Gold Markets Technical Analysis
The gold markets rallied a bit during the early hours on Tuesday, as we are now testing the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people pay close attention to. So, breaking above there then opens up the possibility of a move to the $2,700 level. Short-term pullbacks at this point in time will almost certainly be thought of as value propositions. And with that being the case, I think you’ve got a situation where you are looking for some type of value. The trendline has been so prevalent for some time now that I think most traders are watching should continue to be support and breaking down below there could open up a move to the $2,500 level.
All things being equal though, I do think that gold will eventually go looking to the $2,800 level, which is where we have recently seen the market pull back from. In general, I think gold is going to continue to get a little bit of a boost as the war in Ukraine seems to be heating up again, at least as far as the rhetoric is concerned. So, with that, I think gold remains a buy on the dip type of market and I do think the trend is very much intact, and it looks just as strong as it did a few months ago. With this, a lot of value hunters are getting involved.
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