Gold markets broke down significantly during the trading session on Thursday, reaching the below the $1300 level, an area that the longer-term traders will be paying attention to, and beyond that I think there is plenty of support underneath there. The $1280 level is a massive “floor” in the market. Just underneath there we have significant support at the 200 day EMA which is just below the $1280 level.
Gold Technical Analysis Video 12.04.19
If we were to break down below there, the market will probably unwind rather drastically, as it would be a very significant bearish signal that the longer-term traders would probably be bailing out of the gold market. At this point, it could open the door down to the $1250 level, possibly even the $1200 level longer-term.
However, we obviously have a lot of interest in gold as of late so it would make sense to see the market reached towards the $1310 level, followed by the $1325 level, both of which have been areas of interest in the past. I do like go longer-term, as I believe the US dollar is a bit overbought but obviously this will continue to be very noisy and therefore Gold should be approached very carefully. It can turn on a dime, or more specifically a greenback. If we were to break down below the bottom of the 200 day EMA, you could then start to look at very significant selloff. If we were to break above the $1350 level, that would be the beginning of a massive move higher.
Please let us know what you think in the comments below