Gold Technical Analysis
The gold market has plunged in early trading on Friday as we continue to see a lot of really noisy trading overall in an environment that is becoming increasingly “risk on.” And that I think is the biggest problem gold has at the moment. You’re just looking at a market that just doesn’t have a lot to fear at the moment. And therefore, the idea of jumping in and buying gold isn’t as appealing as it could be. In fact, in pre-market trading, we have broken below the crucial 50 day EMA. So, I’m watching that very closely as well, due to its influence at times.
I have no interest whatsoever in trying to get too aggressive here in shorting the market. And I don’t necessarily think that you can buy the market on a whim either. I do recognize that we could see a lot of noisy behavior, but over the longer term, I still think there is a massive amount of support to be found near the $3,200 level, an area that has been important multiple times in the past. So, with that, I remain bullish longer term, but I recognize we probably have some work to do here, perhaps burning off some of the excess before we really start to buy again. If we break down below $3,200, then we could see a few major problems, but even then, I think you probably have a lot of support at the $3,000 level as well.
