During Monday’s trading session, gold prices climbed to the 200-day exponential moving average. However, we are beginning to exhibit indications of fatigue.
Analysis of Gold Market Technicals
The 200-day exponential moving average (EMA) has been tested by a Monday rally in gold prices. At this moment, it appears that the market will continue to be volatile, and I believe that it is likely just a matter of time until we see some hesitancy and/or selling. Ultimately, this will be determined mostly by the US currency and, of course, bond rates.
The 200-day exponential moving average has some psychological significance, thus it is likely that traders will be attracted to the market in this neighborhood. Nonetheless, the $1800 level below has provided substantial support, so we may be attempting to enter a consolidation period prior to a rebound.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if required, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts provide spreads beginning at 0 pips and commissions of $3.50 every 100k transacted. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any nation or jurisdiction where distribution or use would violate local law or regulation.
Breaking above the trading session’s highs on Monday would be a positive indication, and would almost likely have traders targeting the 50-day exponential moving average. If the market surpasses this level, it will be able to challenge $1,900. It is too soon to judge whether or not this is possible, but it is certainly something to keep in mind. Gold is currently subject to a great deal of influence, and if I were a metals trader, I would purchase gold. I am more likely to trade on waning silver rallies, or on some form of “pairs trade” in which I sell silver and purchase gold. The market is little overbought, so a pullback is probably prudent nonetheless.