Technical analysis of the gold market
Gold markets fell again on Thursday as we broke down for the second day in a row. That being said, the market is now trying to figure out what to do about the 200-day EMA. The 200-day EMA is obviously an indicator that many people will pay attention to. The 50-day EMA is currently falling, and this perhaps suggests that we are trying to form the so-called “death cross”. Obviously, we’re not there yet, but it’s something to watch.
If we can turn around and clear the last two day highs, then we have a chance to break above the 50-day EMA, possibly continuing to reach the $1900 level. That being said, you have to be very careful before you get aggressive one way or the other, as we keep seeing a lot of loud behavior back and forth. You will need to keep an eye on several markets, not the least of which is the bond market.
The US dollar also has an influence, so pay attention to that as well. If we break above these candlesticks for the highs of the week, then even though it will be bullish, it will be very nervous. If we break below the low of the candlestick for Thursday’s trading session, then I think we will pull back in order to find some type of supportive action between here and the $1800 level. Falling below $1800 could cause a major breakdown in this market.
Gold Price Predictions Video 27.05.22
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This article was originally published on FX Empire