Gold markets initially pulled back during the trading session on Monday, but then bounced in order to form a bit of a hammer. At this point in time it looks as if the $1450 level continues to be a massive support of level, as we have seen the market bounce from there a couple of different times. This is also the top of an ascending triangle that had formed previously, and at this point it looks very likely that it’s only a matter of time before we have buyers given enough time. The 50 day EMA above is above, and if we can break above there it’s likely that the market would then go looking towards the $1500 level.
Gold Analysis Video 03.12.19
Above there, then the market can reenter a bullish position, and quite frankly we are only a couple of bad headlines away from getting there. Beyond that, central banks around the world continue to loosen monetary policy so it would make sense for gold to continue going higher. Otherwise, if we were to break down below the $1450 level, then we will be testing the 200 day EMA underneath which is closer to the $1425 level. A breakdown below that level would unwind the market completely, and at this point in time it’s likely that the market would drop drastically, perhaps down to the $1350 level. I also suspect that if the US/China trade deal ever get signed, that will probably crush the bullish market in the gold commodity.
This article was originally posted on FX Empire
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