Gold markets bounced a bit during the early hours on Tuesday, as we continue to see more of a “buy on the dip” mentality in this market.
We rallied a bit during the trading session on Tuesday in the gold market as we continued to see a lot of noise. I suspect that the 50 day EMA is going to continue to offer a bit of support and we have bounced from there of the last two trading sessions. At this point, I think the $2,000 level is of course going to be important to pay attention to below there as well, as it is not only a large psychological figure, but it’s also an area where we’ve seen a lot of resistance previously.
Looking at this market as a buy on the dip opportunity is probably going to be the way I play it most of the year, but it certainly is right now as traders are just now putting on bigger positions for the year and of course are trying to catch up to the overall trend in and of itself. Once we break above the $2075 level, it’s very possible that we may try to take on the top of that massive candlestick from December 4th.
Ultimately, the inherent volatility of gold is showing itself, but I also recognize that this is a market that’s been in an uptrend for multiple reasons. Pay close attention to the 10 year yield in the United States, which can have a major influence, and of course many geopolitical issues at the same time also provide a little bit of support for gold as well.
Source: Fxempire
