- During the trading session on Tuesday, the first thing that I notice with the gold market is that we continue to hang onto a significant support level in the form of the $2600 level, which of course is a large, round, psychologically significant figure, and an area that has offered quite a bit of support over the last couple of months.
- Quite frankly, I think the gold market is trying to sort itself out for the next couple of months, and the fact that we are in the midst of the holiday season of course has its own influence as well.
Top Forex Brokers
Technical Analysis
When I look at the technical analysis in the gold market, the 50 Day EMA sitting just above is a significant barrier, at least in the short term. If we can break above there, then it’s likely that the gold market will try to go looking to the $2700 level, where we had formed a bit of a double top recently. If we break down below the $2580 level, then it opens up a move down to the $2500 level, which also happens to have the 200 Day EMA hanging about it.
At this point, the market is likely to continue to see a lot of sideways action in the short term, mainly due to the fact that most traders will be trying to put money to work for the new year, and there will be quite a bit of burying of opinions. Money managers have to start to get back to work, but it’s really not until January 10 when we get the Non-Farm Payroll announcement that I think you will start to see more liquidity flow into most markets.
Recently, we have seen the US 10 year yield race to the 4.6% region, and if that continues to be very strong, I do think that you have a major issue with the gold market as far as bullishness is concerned. That being said, I also recognize that there are plenty of geopolitical issues out there to keep the market somewhat afloat. Quite frankly, I do think that gold still does fairly well, but it might be more sideways than anything else in the short term.
Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.