- The gold market continues to hang around the center of the overall consolidation area that we have been in for what seems like a lifetime now.
- The market participants seem to be looking at the $3,200 level as a potential floor in the market, while the $3,500 level above continues to be a major ceiling.
- With that being said, I think you have a scenario where traders are going to be looking to at least attempt to push gold higher with the 50 day EMA underneath offering support.
With that being the case, I think you have to look at this as a market that will eventually find technical buyers. And of course, you should also keep in mind that the market has been in an uptrend for ages. So, working off some of these frothy markets makes a certain amount of sense. A pull back to the $3,200 level almost certainly will offer an opportunity to pick up quote cheap gold. And a break above the $3,500 level opens up the possibility of a move to the $3,800 level based on the measured move.
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Summer Can Be Tricky
This is a typically quiet time of year. So, I believe we've got a situation where you just look at this as a market that has taken a little bit of a breather, but you know, it was something that was needed. Markets cannot go in one direction forever. I look at dips as value. I am more than willing to step in and buy this market. So therefore, I like the idea of looking for a breakout and the measured move of course should send this market towards the $3,800 level. In that environment, I would anticipate seeing a lot of “FOMO traders” jumping into the gold market.
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