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Tuesday, June 06, 2023 11:29:18 AM
Gold Markets Hover Around the 50-Day EMA
By: Christopher Lewis | June 6, 2023
• The gold market has been relatively quiet during the trading session on Tuesday as we continue to hang around the 50-Day EMA.
Gold Market Technical Analysis
Gold markets have gone back and forth during the course of the trading session on Tuesday, as we are hanging around just below the 50-Day EMA. The 50-Day EMA is an indicator that a lot of people will pay close attention to, and of course is currently going flat, suggesting just how lackluster this market could be. I think at this point we are trying to consolidate in order to show signs of life and perhaps try to recover.
When you look at the chart, you can see that the $1960 level offers support, while the $2000 level above is resistance. If we break above the $2000 level, then it’s likely that we could go looking to the $2050 level above. On the other hand, if we were to break down below the $1960 level, it’s very possible that we could drop down to the 61.8% Fibonacci level, closer to the $1920 level. We would also see a lot of noise underneath due to the fact that you would be between the 50-Day EMA and the 200-Day EMA indicators, which typically means that we have a lot of noisy behavior.
I do think eventually we have the market going higher, but obviously we need to see the bond markets offer a little less in the way of yield. After all, when the bond markets offer a good return, then it’s likely that we would see the gold market drop a bit, as it’s safer to simply own bonds. However, if yields start to drop again, then I think that negative correlation could come into play, allowing gold to rally.
In the interim, I think that we just simply go back and forth in this little area as we try to figure out where we are going next. I do think at this point in time, it more or less looks like a market that’s trying to build up the necessary momentum to go higher, but I need the market to tell me it’s time to get long before I start buying gold again. In the meantime, I think a little bit of patience will probably go a long way.
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DiscoverGold
By: Christopher Lewis | June 6, 2023
• The gold market has been relatively quiet during the trading session on Tuesday as we continue to hang around the 50-Day EMA.
Gold Market Technical Analysis
Gold markets have gone back and forth during the course of the trading session on Tuesday, as we are hanging around just below the 50-Day EMA. The 50-Day EMA is an indicator that a lot of people will pay close attention to, and of course is currently going flat, suggesting just how lackluster this market could be. I think at this point we are trying to consolidate in order to show signs of life and perhaps try to recover.
When you look at the chart, you can see that the $1960 level offers support, while the $2000 level above is resistance. If we break above the $2000 level, then it’s likely that we could go looking to the $2050 level above. On the other hand, if we were to break down below the $1960 level, it’s very possible that we could drop down to the 61.8% Fibonacci level, closer to the $1920 level. We would also see a lot of noise underneath due to the fact that you would be between the 50-Day EMA and the 200-Day EMA indicators, which typically means that we have a lot of noisy behavior.
I do think eventually we have the market going higher, but obviously we need to see the bond markets offer a little less in the way of yield. After all, when the bond markets offer a good return, then it’s likely that we would see the gold market drop a bit, as it’s safer to simply own bonds. However, if yields start to drop again, then I think that negative correlation could come into play, allowing gold to rally.
In the interim, I think that we just simply go back and forth in this little area as we try to figure out where we are going next. I do think at this point in time, it more or less looks like a market that’s trying to build up the necessary momentum to go higher, but I need the market to tell me it’s time to get long before I start buying gold again. In the meantime, I think a little bit of patience will probably go a long way.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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