Gold markets have rallied a bit during the course of the trading session on Monday to show signs of life again. We broke above the highs of the massive candlestick on Friday, and that is a good sign. It is possible that we are going to go higher and try to fill that gap above, but that does not necessarily mean that is going to be easy to get there. In general, gold has been struggling to hang on to gains though, so whether or not we can break through that gap is a completely different question altogether.
Gold Price Predictions Video 08.02.22
Looking at this chart, the 200 day EMA underneath at the $1802 level continues to be supportive, and any dip below there will probably find buying pressure again based upon what we have seen of the last couple of days. If we were to turn around a break down below the $1780 level though, that would be a very negative turn of events and send sellers into this market that could have gold looking very bearish indeed.
At this point I believe that the buyers have the upper hand, but the question is more or less whether or not we are going to see enough momentum to finally enter this market to make gold attractive enough for a bigger move? The jury is still out but it certainly seems to be more levered to the upside than anything else. I think you continue to see a lot of choppy behavior, but if you are cautious enough you might be able to have a “buy the dip” mentality on short-term charts.
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This article was originally posted on FX Empire
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