Gold Markets Technical Analysis
Gold markets continue to see buyers as we see a lot of concerns around the world and it does make a certain amount of sense that people are running to the gold market for safety as it is a traditional safe haven. That being said, I do think that you need to be very cautious here, because we’ve seen a lot of forced liquidation in the gold market by traders who, quite frankly, just had too many losses in other places to get overly aggressive and then had to sell gold to pay for the margin in those markets.
Ultimately, I think this is a scenario where traders will continue to look at the 50 day EMA underneath as potential support. And of course, we’ll look at the $3,000 level as an important marker on the chart as well. We had recently formed a pretty significant bullish flag, and that bullish flag does suggest that we could go all the way to the $3,300 level.
Because of this, I am a little bit hesitant to get overly concerned about the market. I do think that there are a lot of headwinds in the liquidation situation, but I still see this chart telling me that we are eventually going to $3,300 if you are patient enough. That doesn’t mean we get there overnight and you will have to deal with a certain amount of volatility and choppiness on the way up. But I think this is a market that very well could continue to be a go-to for traders looking for safety and, of course, a little bit of profit.
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