- The first thing I see is that we have in fact plunged.
- That being said, there are plenty of areas underneath that I think a lot of people will be looking to buy gold, and quite frankly I don’t have any interest in trying to get short of this market.
- After all, there are a massive amount of reasons for this market to continue going higher, and therefore I just simply will bide my time in order to find cheap ounces going forward, and therefore I’m just simply waiting to see some type of bounce that I can start buying into.
Technical Analysis
The gold market has been bullish for quite some time, and I think that will continue to be the case going forward. Ultimately, the $2550 level should end up being supported, as it has been in the past. Furthermore, we also have the 50 Day EMA coming into the picture, right at that same level. In other words, it’s very likely that we will see value hunters coming in if we reach that area. That being said, between here and there I would anticipate that sooner or later people would be getting involved to go long.
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The size of the candlestick is rather negative, but a lot of this will come down to whether or not it actually “sticks” as far as a negative turn of events. If we were to break down below the 50 Day EMA, then it’s possible that we could drop down to the $2500 level. This of course is an area that would have a lot of psychology attached to it, and of course we would have a lot of options traders looking at that area as a potential important region.
With geopolitical tensions only getting worse, and of course interest rates dropping around the world, it makes a certain amount of sense that gold will continue to find buyers. If we do continue to find those buyers, then I will look at this as an opportunity to take advantage of a longer term uptrend, as gold will then be “on sale.”
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