The gold market initially pulled back just a bit during the early hours on Thursday, only to turn around and show signs of life as we are hanging around the 50-day EMA still. Keep in mind that Thursday is Thanksgiving in the United States. So, the futures markets had limited hours and therefore, I don’t read too much into the candlestick other than it’s hanging around the same area the last couple of days region of trading.
So, with this, I think you have to still assume that the market is going to be very choppy and very quiet, but I think it still has a certain amount of upward momentum over the longer term. If we do break down below the low of the Tuesday session, then I think we’ve got a situation where we go looking to the uptrend underneath. Regardless, we are still very much in an uptrend, and I think at this point in time, the $2,500 level remains the floor in the trend, and there are concerns out there that might make gold attractive, such as the war in Ukraine, which is going nowhere.
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The market continues to be one that is also watching central banks around the world cut rates, so I think that helps. And then of course you’ve got major Asian central banks getting involved in buying gold. All things being equal, keep in mind that Friday will probably have a certain lack of liquidity to pay attention to. But as we go into next week, it wouldn’t surprise me at all if we just continue to drift to the upside.
Source: Fxempire
