[ad_1]
The Gold market is not one that I would be selling anytime soon, unless of course we got some type of major shift in attitude.
- Gold markets experienced back and forth trading during Friday’s session, hovering around the $2000 level.
- Despite breaking above this level several times over the past few days, significant selling pressure and options barriers remain a major barrier.
- However, if the current pressure continues, it is only a matter of time before the level gets broken.
If the market breaks below the $1937 level, it could lead to a significant pullback to the $1900 level, a large, round, and psychologically significant figure. The 50-Day EMA is also situated just below this level. A hammer formation on the weekly chart indicates that a potential correction could occur, even though it might not necessarily be the end of the gold bullish run.
While the US dollar’s movement can influence the gold market, it is possible for both to rise simultaneously. A daily close above the $2012 level could propel the market towards a $2100 level, especially as traders seek to protect their wealth in the current environment.
It is worth noting that the market’s perspective is still focused on “buying the dip.” Even if a significant selloff occurs, signs of support will continue to attract buyers trying to take advantage of “cheap gold.” The market has experienced a drastic run recently, suggesting the need for a short-term breather.
In conclusion, gold markets continue to face significant selling pressure and options barriers around the $2000 level. A break below the $1937 level could lead to a pullback to the $1900 level, with the 50-Day exponential moving average situated just below it. A daily close above the $2012 level could trigger a rise towards the $2100 level, as traders seek to protect their wealth. Despite the market’s bullish run, traders need to understand that gold can be extraordinarily volatile, therefore you need to be cautious with your position size. Yes, I do believe that eventually goes higher but at the end of the day, this is not a market that you want to get overly exposed to at these extraordinarily high levels. At the very least, I would like to see some sideways action in order to work off some of the froth. The market is not one that I would be selling anytime soon, unless of course we got some type of major shift in attitude. At this point, I just don’t see that being the case.
Ready to trade our Gold price forecast? We’ve made a list of the best Gold trading platforms worth trading with.
[ad_2]