Gold markets pulled back a bit initially during the trading session on Wednesday, as we reached down towards the crucial $1500 level. The $1500 level will of course attract a lot of attention, and as a result it’s not a huge surprise to see that we got a bit of a bounce from there. That being said, I do believe that it’s only a matter time before value hunters come back into this market. If we break down below the $1490 level, then it’s possible that we look for some type of breakdown that could reach towards even more supportive levels in the form of the $1450 level, and perhaps even the 50 day EMA which is painted in red on the chart.
Gold Analysis Video 22.08.19
All things being equal, this is a market that continues to be bullish longer-term so I don’t have any interest in shorting, even if we do break down below that level. With that, I think that there will be even more support down at the 50 day EMA, as the market participants have been following the 50 day EMA for some time. Ultimately, I think there is just far too much uncertainty globally from a geopolitical standpoint and of course global slowdown to think that this market is going to suddenly break down drastically. While the Federal Reserve could be a little bit more bullish than anticipated, the reality is any pullback should be thought of as a gift after we have had this explosive move over the last several months.
This article was originally posted on FX Empire
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