- Gold has initially fell a bit during the trading session here on Thursday, but then turned around to show signs of life again.
- It certainly looks like gold is trying to do everything it can to turn things around and rally.
- The 50-day EMA, of course, is going to continue to be important, so we should pay close attention to that.
I think given enough time, we have a scenario where we do break higher with the $2040 level being a major support level in the past as well as resistance, probably being your first target. After that, then you have the $2050 level and eventually the $2075 level, which I think is the target for intermediate trades. Having said that, I think is going to take quite a bit of effort to get there and you probably have plenty of time. Markets look as if they are trying to settle into some type of range for the year, not just in gold but multiple other assets as well, so in that sense you can say that the analysis for gold is no different than just about anything else I watch at the moment.
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Noisy Behavior Continues
In general, the gold market has been very noisy as of late and there is a lot to wonder about, but I think you also have to recognize that underneath there is a massive amount of support at the $2,000 level. Underneath the $2,000 level, I think there is about $20 worth of support and all things being equal, it's not until we break down below the $1,980 level that I would be concerned.
In that environment, I think you could be looking at a major breakdown because the 200 day EMA should be right there as well and that, of course, will offer a bit of technical support. Anything below there, then gold almost certainly falls apart and that would be a very bad move. In general, I think this remains a buy on the dip market, but I also think it's going to continue to be very noisy, which you can say about most of the markets in general anyway. So, with that, I remain bullish but cautious, trying to stay nimble and collecting profit along the way. Eventually I do think we challenge $2075 again.
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