Technical analysis of the gold markets
Gold markets rose slightly in the early hours of Wednesday as we continue to see a lot of buzz around the 50 day EMA. Honestly, the 50 day EMA is a very interesting area to see some level of support and noise. And I think it’s probably only a matter of time before we see market participants come back into the gold market and try to push it higher, especially because of all the geopolitical concerns. Yes, Israel and Lebanon appear to be heading toward a ceasefire, but that doesn’t change the war in Ukraine. Therefore, I think there will be a geopolitical push in the near future as far as the gold market is concerned.
Plus, central banks around the world continue to buy gold, so it’s putting a bit of a natural bid on this market. And on the other hand, we should be concerned about enormous amounts of wasteful spending by the world’s largest economies, especially as we are now starting to see central banks around the world cutting interest rates that should help gold. Furthermore, we just have a nice upward trend and there is no point in fighting it. There is an uptrend line near the 2,575 range. And again, we have support in the 2,500 area. So all things being equal, I think gold remains a dip market buy. And I think it will eventually look towards the $2,800 level that it had previously retreated from.