Gold Price Forecast – the Gold Markets Reach the 200 Day EMA

Gold Market Technical Analysis

Gold markets have rallied to kick off the trading week on Monday, testing the 200 day EMA. At this point, the market looks as if it is going to continue to be noisy, and I do think that it is probably only a matter of time before we would see a bit of hesitation and/or selling off. Ultimately, this will come down to the US dollar more than anything else, and of course bond yields.

The 200 day EMA does have a certain amount of psychological importance, so it is probably worth noting that we will see traders attracted to the market in this general vicinity. That being said, the $1800 level underneath has offered a significant amount of support, so we may be trying to enter some type of consolidation phase before a recovery.

The market breaking above the highs of the trading session on Monday would be a good sign, and it would almost certainly have people aiming for the 50 day EMA. Breaking above that then has the market challenging $1900. It is a bit early to determine whether or not that can happen, but it clearly is something to keep in the back of your mind. Gold has a lot of influence being thrown upon it, and at this point, if I were to be a trader of metals, it would be gold I would be a buyer of. Fading rallies in silver are actually the more likely of trades I take, or perhaps some type of “pairs trade” when I sell silver and buy gold. All things been equal, we are a little overbought so pullback probably makes sense regardless.

Gold Price Predictions Video 24.05.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

• German economy minister expects EU embargo on Russian oil ‘within days’ -ZDF

• Brazil’s Air Force to cut Embraer order to 15 aircraft -report

• U.S. warns companies of ‘reputational risks’ of doing business in Sudan

• May 24th 2022: $1.07 Poised to Break on EUR/USD; H4 Resistance Eyed Between $1.0758 and $1.0713

• Powell sworn in to second four-year term as Fed chief

• Harangued by Trump, Georgia’s governor poised to rebuke him in midterm vote