- Gold markets drifted a little bit lower during the trading session on Thursday, but we have seen enough support near the 50 Day EMA to turn things around and show signs of life.
- By doing so, the market looks as if it is trying to reassert its uptrend, but we have quite a few things out there that are working back and forth against the gold market
Friday
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Friday will be very cautious trading until we get the speech from Jerome Powell, then I expect to see a lot of noisy behavior. Quite frankly, traders are doing everything they can to try to sort out what happens next with the Federal Reserve, and if Jerome Powell sounds somewhat dovish, that could give a little bit of a boost to the gold market, as well as causing a bit of shrinking to the US dollar. However, both can go up at the same time that there are a lot of concerns about global economics, which is something that I think a lot of traders are worried about.
The Trend
The trend is still very much bullish over the longer term, and it is probably worth noting that the market has been sideways, but it does continue to produce “higher lows” again, as we are right around the crucial 50 Day EMA offering support as well. I do think that eventually we could go looking to the $3500 level, an area that has been significantly resistant. If we can break above there, then I think the market is likely to truly take off, perhaps getting a “measured move” of $300 to reach the $3800 level based on what we have been doing over the last couple of months during slow summer trading.
If we were to turn around a breakdown below the $3200 level, then I think you have a situation where traders are going to be looking at this as a scenario where the gold trend could change, but it’s not until we get below the $3200 level that I think much of it.
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