The gold market initially fell during trading on Monday, only to turn around and show signs of life again. By doing so, it looks pretty strong, and it is worth noting that the hammer being formed is sitting right here at the 50-day EMA. I have said in the past that I believe $3,200 will be a major floor in the market. That’s assuming we get there, but quite frankly, I don’t even know if that happens. With this, I believe that eventually the market will take off to the upside. But of course, you had pretty tough selling on Friday as the market dumped it.
If we were to break down below the $3,200 level, then we could see a pretty significant drop down to $3,000. But as things stay right now, I think we’re probably heading back to the upside, especially if the US dollar continues to weaken against other markets. So, interesting times, and of course, the risk premium may have been taken out of gold. It is perhaps a little bit of an overreaction to the piece in the Middle East because there were plenty of reasons for gold to go higher to begin with.
Experts trade the markets with IC Markets
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spread
Now that we’ve got some of the fear money out, then maybe we will continue the overall uptrend. Regardless, I have no interest whatsoever in shorting this market and I will remain bullish and more likely than not long of the gold market as it has been so strong for so long.
Source: Fxempire
