Gold markets went back and forth during the trading session on Tuesday in rather volatile trading, as it was announced that the Americans and the Chinese would be speaking again via phone in the next couple of weeks. That of course had machines trading crazy, jumping into the S&P 500, selling bonds, and putting a general “risk on” type of situation into the overall markets. In that environment, gold does tend to get sold but I would also point out that we have found a massive amount of support at the $1500 level.
Gold Outlook Video 14.08.19
If we were to break down below there, the market could go to the $1450 level, which is previous resistance. It should now essentially be the “floor” in the market, as the 50 day EMA is racing towards that area, which was also the top of the descending triangle that kicked off this most recent move. I believe it’s only a matter of time before the buyers come in and try to pick up the market in that general vicinity. In fact, it’s not until we break down below the 50 day EMA which is pictured in red on the chart that I would be concerned about this overall trend.
Central banks around the world continue to ease monetary policy, so it makes sense that gold should continue to rise, right along with silver and platinum. With this, I buy short-term dips and look for signs of a bounce to add to my core position for gold. Selling gold anytime soon seems very unlikely.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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