Superior broker technology provider since 2010
+1 (315) 675 1086 |

Gold Continues to Sit at the Support Level

The longer-term trend is still to the upside so I think this remains more or less a “buy on the dips” type of situation that people will flock to.

  • Gold markets have done very little during the trading session on Wednesday as we continue to hang around the 38.2% Fibonacci level, an area that has attracted a certain amount of support over the last couple of days.
  • It’s probably worth noting that we are right at where we had seen previous resistance, so therefore “market memory” comes into play.
  • We are also between the 50-Day EMA and the 200-Day EMA indicators, which quite often will cause a bit of a squeeze.

At this point, we can turn around a break above the 50-Day EMA, then I think gold has a real shot at resuming its uptrend. That being said, you need to be cautious with the $1900 level as it is an area where we’ve seen a lot of selling pressure in the past, as we formed multiple inverted hammers in a row. Because of this, I would anticipate that getting above $1900 will be difficult, but it’s not necessarily impossible. It’s also worth noting that we sold off quite drastically ahead of making those inverted hammers, with 2 massive red candlesticks. In other words, if we do start to take off, it is a situation where the process of going higher would probably be slow and painful.

On the other hand, if we break down below the bottom of the hammer from last Friday, then we could see this market go down to the 200-Day EMA, which is hanging around the $1800 level. The $1800 level of course is a large, round, psychologically significant figure, and an area where a lot of people will be paying attention to. You should also be aware the fact that the Federal Market Open Committee Meeting Minutes came out late in the day, and that will have people betting on what the Federal Reserve does next. That obviously will have an influence on gold as it will have an influence on the US dollar and interest rates. Because of this, it could be a very quiet day as we hang around and try to figure out what the Fed is going next, followed by a lot of volatility. The longer-term trend is still to the upside so I think this remains more or less a “buy on the dips” type of situation that people will flock to.

XAU/USD chart

Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.