- Gold initially fell during the trading session here on Thursday to touch the 50 day EMA and then turn right back around and form a hammer.
- When you look at gold from a longer term standpoint, we are trading in a $300 range with the $3,200 level underneath offering support, and the $3,500 level above offering resistance.
- Ultimately, I think this is a market that is just killing time right now.
We have to sort out whether or not we are going higher later this year. And I think it's very possible, but the fact that we are in the middle of a range tells me it is not time to get too cute here and try to put on big, longer term positions.
Top Forex Brokers
On a Pullback, I am Buying
That being said, if we were to pull back towards the $3,200 level, I'd be more than willing to get involved in something that I might hang on to. This is because we are consolidating after a huge run higher and now just simply killing time. That's pretty normal after these big runs. And I do think that there are plenty of macro-economic reasons to believe the gold will still be part of the picture anyway.
So, with that being said, this is a market that I think remains on the dip, but more likely than not, you are going to have to make your profit when you get them, if you are going to trade in this area here. Right now, I look at this as a market that quite frankly, you just don't want to be bothered in this area unless you are seriously playing back and forth on short term charts, you something like a 15 minute chart. That's perfectly fine. But if you're looking for a bigger move, this is not where it's going to happen. You can see that we have been somewhat sideways here for a couple of weeks. So, the intraday trader clearly is doing fairly well here. But right now, we just don't have anything going on for swing traders.
The 50 day EMA of course is widely followed. So, it's not a huge surprise, but I think we're just chewing up some of this excess froth in the market. think a lot of bigger traders aren't even here right now. Certainly, as I watch intraday, it doesn't look like we are flying with volume. Most days you can see that volume continues to drift a little bit lower, although not evenly as you can see, and that tells me that there's just a lack of momentum. And therefore, if you're a short-term trader, like I said, this is a brilliant little box to trade in between $3,380 and $3,310. But I'm looking for a bigger move. So, I would love to buy closer to $3,200 or wait until we break out of this box and then start to scale into a long position.
Ready to trade our Gold price forecast? We’ve made a list of the best Gold trading platforms worth trading with.