Christopher Lewis
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Gold markets have rallied significantly during the trading session on Tuesday to break above the 200 day EMA which of course a lot of longer-term traders pay attention to. The fact that we are above that level again suggests that we could see a certain amount of interest in this market, because quite frankly it has pulled back quite a bit. At this point, it is a bit early to call some type of serious turnaround, but it is most certainly in an area where you would expect to see a lot of people being interested in the market.

Gold Price Predictions Video 02.12.20

Not only do we have the 200 day EMA but we also have the $1800 level, an area that was the scene of a major breakout previously. That should have a certain amount of “market memory” priced into it so do not be surprised at all if we bounce. Furthermore, the US dollar is under serious pressure so that could be a reason why gold goes higher as well. At this juncture, it certainly looks as if the downside is somewhat limited, if for no other reason than the fact that we are oversold. There are multiple levels underneath that could offer support, not the least of which would be the $1700 level, the $1750 level, and of course the 50% Fibonacci retracement level. With this, I am cautiously optimistic, but I would most certainly stress the word “cautiously.”

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