The gold market rallied rather significantly during the trading session on Thursday as the ECB has cut rates and a unanimous decision, and that seems to have people looking for that cheap money again. All things being equal, this is a market that I think will continue to be very noisy, but I also recognize that we have a scenario where traders are looking for some type of safety in a market that quite frankly is not very convincing from a risk spectrum standpoint. Ultimately, the markets are going to continue to be nervous, so therefore it makes quite a bit of sense that we would see gold attract a certain amount of inflows at this point in time.
With that being the case, I think you have to understand that this market will continue to be very noisy, but it’s obvious that we are in an uptrend and let’s be honest here, I don’t think that will change anytime soon. With this, I like the idea of buying dips and we’ll be looking to this market to take advantage of any pullback that we see.
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The 20 day EMA, the 50 day EMA and the 200 day EMA are all lining up the same way. And the $2,530 level for me at least is going to be support going forward. I don’t really have a target at this point. This is just a buy and hold asset, but you do need to be reasonable with your position sizing because quite frankly, risk appetite’s all over the place.
Source: Fxempire
