Technical analysis of the gold markets
The gold market pulled back slightly during Friday’s trading session as we continue to see a lot of processing from a huge rally. For what it’s worth, we recently broke out of the bullish banner and the measured move should send the market towards the $2,800 level, but actually I think there’s a situation right now where we’ll get there, but I also think it will be noisy. Because recently we’re up about 6% in a handful of days.
So gold is, I think, consuming all this momentum. Even if we decline from this point, the $2,680 level is an area where you could see support. And on the other hand, especially at the $2,600 level, which also includes the 50-day EMA, an indicator that could provide some support in itself.