Technical analysis of the gold markets
Gold markets recovered in the early hours on Tuesday as we are now testing the 50-day EMA. The 50-day EMA is obviously an indicator that many people pay close attention to. So breaking above that opens up the possibility of a move towards the $2,700 level. Short-term pullbacks will almost certainly be viewed as value propositions at this point. And now that that’s the case, I think you have a situation where you’re looking for some kind of value. The trendline has been so dominant for a while that I think most traders are paying attention that the trendline should continue to provide support. A decline below could open a move towards the $2,500 level.
However, all things being equal, I think gold will eventually head to the $2,800 level, which we have recently seen the market pull back from. Overall, I think gold will continue to get a small boost as the war in Ukraine heats up again, at least in terms of rhetoric. So with that, I think gold remains a buy in the dip type market and I think the trend is largely intact and looks just as strong as it did a few months ago. Many value hunters are involved in this.