Gold markets initially rally during the trading session on Thursday but ran into a bit of trouble at the 50 day EMA. There has been a lot of volatility throughout the session, as comments coming out of officials from both the EU and the UK have thrown market risk appetite all over the place as we are back to the typical Brexit nonsense. That being said, gold has been greatly influenced by what happened with the US dollar, so therefore you cannot read too much into the candlestick other than the fact that we are essentially hanging around the $1900 level.
Gold Price Predictions Video 02.10.20
50 day EMA just above continues to be important, and therefore I think it is worth paying attention to. We have seen a lot of choppiness right around this figure, so given enough time I fully anticipate that there is a reaction. I do think that we are likely to see a little bit of a pullback from here, perhaps down to the $1850 level, an area that has been important recently. However, I think the true “floor” in the market is probably closer to the $1800 level, which also features the 200 day EMA sitting just below it. With that in mind, I would be much more aggressive about buying gold at that low level. Between now and then, I suspect you need to see either a breakout and a daily close above the 50 day EMA, or perhaps some type of supportive daily candlestick to start buying. Either way, I have no interest in selling gold anytime soon as central banks continue to print.
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This article was originally posted on FX Empire
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