The gold market has stabilized over the past few days, and Thursday continues this pattern. Ultimately, this is a market that looks bullish, but volatile as usual.
Gold Markets Technical Analysis
The gold market initially pulled back just a bit during the Thursday session, only to find plenty of support right above the crucial $2,300 level. This is an area that I think a lot of people will be paying close attention to, as it is a large round figure.
And of course, an area where there’s probably a lot of options played. The fact that we rallied does suggest that perhaps we are trying to do everything we can to build up a little bit of pressure to take off to the upside. Keep in mind, this is a market that has been very bullish until very recently, and therefore you have to look at it through the prism of whether or not it is actually going to build up enough momentum and take off to the upside to get overly excited.
Experts Trade Gold 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
At this point, if we take out the top of the inverted hammer from the Wednesday session, then I think that’s a good sign. That will probably go back towards the highs near the $2,400 level. Underneath, if we were to break down below the 2280 level, then I think you could have a run down to the 50 day EMA and possibly even as low as $2,200 in order to find more support.
Either way, I don’t have any interest in selling gold because, quite frankly, it’s a market that has too many things working for it. At the same time, central banks around the world continue to accumulate gold. Interest rates are more likely than not going to have to be cut sooner rather than later, and then, of course, there’s all kinds of geopolitical tension.
All of these point to higher gold prices. And at this point in time, every time the market pulls back, you have to assume that it’s offering value.
Source: Christopher Lewis Fxempire
