- Gold has gone back and forth during the course of the trading session.
- During the day on Tuesday as we continue to hang around the 50-day EMA.
- The 50-day EMA of course is an indicator that a lot of people will be paying close attention to and therefore it's not surprising that we're just hanging about.
But, beyond technical analysis, we have to pay attention to the fact that there is a lot of fundamental information that comes into the market sphere this week. We have the PMI numbers, both manufacturing and services with the manufacturing numbers in the United States coming in a little better than anticipated, but still a little bit contraction based.
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We also have the services number coming out on Wednesday, and then we have job openings, weekly unemployment claims, and then on Friday we have the non-farm payroll announcement. So, because of that, I do think that gold remains a little sideways in the short term, but longer term, it is still very much in an uptrend. I don't necessarily like the idea of shorting gold, although I do recognize it might be a bit difficult to go higher in the next day or two.
Upside? Probably.
I certainly think it favors the upside overall. We've been in an uptrend for quite some time. There are still plenty of geopolitical issues out there. Central banks in Asia continue to buy gold as well. It's hard not to accept the fact that a little bit of gold should be part of your portfolio anyways, considering the geopolitical times that we live in. So, with this, I do like the idea of buying dips. I think the trend line holds and even if it doesn't, it really isn't until we break down below $2,500 that I'd be concerned about the overall uptrend.