Gold markets have rallied a bit during the trading session on Friday, showing signs of resiliency, and at this point the 38.2% Fibonacci retracement level has been offering quite a bit of support. The $1450 level is a large, round, psychologically significant figure and it is also at the top of the ascending triangle that we had broken out of. So-called “market memory” should come into play and therefore it’s likely that the buyers will come in. Overall, this is a market that has to deal with the 50 day EMA above, and therefore if we can break above there it’s likely that the market would go looking towards the $1500 level.
Gold Technical Analysis Video 02.12.19
To the downside, if we were to break down below the $1450 level, it’s likely that the $1420 level would be targeted as it is basically where the 50% Fibonacci retracement level. All things being equal, that should attract a lot of attention as well. The 200 day EMA is hanging around that level, so that should be trend of finding. If we were to break down below that level, it’s likely that the overall uptrend is over, and gold will break down rather significantly. At this point though, the Friday session seems to be rather positive, so it shows that there is in fact some demand for the metal, perhaps in a bit of a safety bid. However, if the US/China trade situation suddenly get a lot better, it’s likely that the gold markets will struggle. On the other hand, if we get more tension between the Americans and the Chinese, gold will probably rally again.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Forecast – Natural Gas Markets Fell Gap
- Gold Price Forecast – Timing The Bottom
- USD/JPY Weekly Price Forecast – US Dollar Continues Higher Against Japanese Yen
- S&P 500 Weekly Price Forecast – Stock Markets Continue To Go Higher
- Crude Oil Price Forecast – Crude Oil Markets Fall Hard On Friday
- U.S. Dollar Index Futures (DX) Technical Analysis – Trader Reaction to 98.095 to 98.380 Will Set Longer-Term Tone