As we continue to threaten the $2,000 level in the futures market, gold markets initially declined during the trading week but later found purchasers. Quite candidly, this market resembles a “beach ball being held under water,” in the sense that once we break out to the upside, the price action could be explosive. In fact, we formed a hammer during the previous week and again during the most recent week. In other words, pressure is mounting, and we must make a more decisive choice.
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It appears to favor the upside at the moment, which makes a lot of sense given that central banks around the world are purchasing gold, and more significantly, there is a great deal of concern regarding the banking system. Regardless of what anyone says about Bitcoin or anything else, the majority of wealth has been stored in precious metals for the past five centuries.
Nonetheless, if we break below the bottom of the preceding candle, it becomes a “hanging man” and could therefore lead to increased selling pressure. The initial objective would be the $1900 level, followed by the 50-Week EMA. Nonetheless, it is important to note that pressure continues to develop, while the $2000 level has significant resistance extending to the $2050 level. Ultimately, an explosive move is imminent, and speculators’ task will be to simply follow it.