Gold markets pulled back a bit during the trading session on Wednesday, testing the lower part of the hammer from the previous session. I do think that we could see this market bounce from here, as long as we can stay above the top of the candle from Tuesday. After all, we had recently seen a lot of consolidation in this area. I do recognize that the $1300 level above is massive resistance, so it will probably take a certain amount of momentum building to get there. That’s not surprising, because quite frankly it’s a large, round, psychologically significant figure.
Gold Price Forecast Video 24.01.19
If we break down below the hammer from the trading session, then the market probably goes looking towards the 50 day EMA, pictured in red on my chart. That should offer more value, because the 50 day EMA is so highly followed in the futures markets. Ultimately, I do believe that we will see a certain amount of volatility, but quite frankly it wouldn’t surprise me at all to see an impulsive moves based upon what’s going on with the US dollar overall. Expect a lot of noise, but quite frankly I do think that gold markets have found a lot of support based upon the Tuesday candle stick and therefore I think we can expect some kind of slow grind higher more than anything else. If we were to break down below the 50 day EMA, that would of course be a very negative sign.
This article was originally posted on FX Empire
More From FXEMPIRE: