TEHRAN (Iran News) – Gold markets broke down a bit during the trading session on Friday as the 50 days EMA has offered a significant amount of resistance. At this point, the 200 day EMA at the $1821 level should offer short-term support, but traders are paying more attention to the interest rates in the United States as if they start to rise is very likely that we will continue to see people flock towards the greenback. If that is the case, that can cause a certain amount of negativity on gold. However, as the reflation trade is essentially the main narrative that people are paying attention to now, it will undulate back and forth as to whether or not it is likely to happen. That has a massive influence on what happens next with the gold market.
If we can break above the 50 days EMA, that opens up the possibility of a move towards the $1900 level. Breaking above there then opens up a move to the $1960 level. To the downside, if we were to break down below the 200 day EMA it is likely that we could go towards the $1800 level, possibly even the $1750 level. In general, I think that we have a lot of noise here, but from a structural standpoint, it does look like there are more buyers underneath than anything else but buying dips for short-term opportunities could be the best way going forward. This is a market that continues to be very noisy, as the overall attitude of traders continues to cause major issues. However, it looks as if there is a bit of a basing pattern right now.
- source : FXEMPIRE