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Gold Continues to Slump
By: Christopher Lewis | April 23, 2024

• The gold market has drifted lower again in the early hours of Tuesday, as we continue to see the idea of a widening war in the Middle East disappear, at least for now. However, there are other reasons to think that the gold market could find buyers eventually.

Gold Markets Technical Analysis

The gold market fell again during the early hours on Tuesday, as you can see, testing the $2,300 level pretty quickly in the day. That being said, this is a market that I think will end up seeing a move lower, perhaps down to the 50 day EMA. After that, we would have $2,200.

So, with that being said, it does suggest that we’re probably more likely than not to see a little bit of selling pressure. And I think part of this comes down to the fact that the geopolitical concerns have kind of calmed down with even the Iranians saying that the Israelis had received the appropriate response. So, if that’s going to be the case, it does take that piece out of the decision making.

That doesn’t mean the gold will start to fall apart or that the trend is over. What it does mean is we are likely to have an opportunity to buy it at lower pricing. The 50 day EMA, the $2,200 level, I think both would be excellent entry points if we get that. But what I’m going to do is wait for a daily candlestick that ends up forming something like a hammer or signs of an impulsive move to the upside that I would take advantage of the relative strength index is now well within normalcy.

So, I think that’s something to keep in mind as well. We are far from the overbought condition that we had been in, so I will probably stop paying as much attention to that. Either way, I think you do get an opportunity for value play. Hopefully, we will drop another $100 and make it a truly strong opportunity, but we’ll just have to take what the market gives us.

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