Gold is sideways on Tuesday, but it looks like we’re just going to sit around the 50 day EMA and try to sort out where to go next. All things being equal, this is a market that I think continues to see a lot of questions asked of it as the central banks around the world continue to accumulate gold, which of course is bullish, but at the same time there are signs that perhaps people are running towards the dollar and that of course hurts gold.
At the same time as that we have the jobs numbers coming out on Friday, which will have a major influence on what happens with the greenback as well. From a technical analysis standpoint, we are sitting at the 50-day EMA and although the 50-day EMA is sideways we also have the uptrend line just below, and then we have the longer term moving average of the 200 day EMA racing towards the $2,500 level.
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If we can break above the $2,725 level, then I think the $2,800 level gets targeted. I still like the idea of buying dips and finding value in the gold market. I have no interest whatsoever in shorting this market. If we were to break down below the 200-day EMA, then things change. But until then, you have to assume that there are buyers out there willing to get involved.
Source: Fxempire
