Gold markets initially tried to rally during the day on Tuesday but then rolled over a bit to reach down to lower levels. This is a market that seems to have a lot of support near the $1275 level, and of course the 200 day EMA sitting just below there doesn’t hurt either. At this point, we have broken through major support at a couple of different levels including the $1300 level, the 50 day EMA which is just below there, and as a result it does look very negative. I think at this point if we break down below the 200 day EMA, we will probably continue to go lower, perhaps down to the bottom of the overall consolidation at the $1200 level.
Gold Technical Analysis Video 06.03.19
I believe that traders will continue to look at this market, they will get thrown around, and this could offer plenty of trading opportunities in both directions. However, the real money is going to be for those who can hang onto the longer trade. At this point, I believe that we will need to pay attention to the 200 day EMA and see whether or not we get some type of bounce or hammer, showing signs of stability. I think you can take your time though, because shorting here doesn’t make much sense as the move has already happened. We will be paying attention to both the 200 day EMA on the downside in the $1300 level on the upside for resistance. All things being equal, this is going to have a lot to do with the US dollar, so pay attention to the US Dollar Index. If it falls, that could give us a bit help over here.
Please let us know what you think in the comments below