Gold continues to see a lot of noisy behavior, as there are many different headline issues out there that could cause some kind of problem for investors.
Gold
Gold markets rallied on Tuesday, which makes quite a bit of sense considering that there's a lot of noise out there and of course concerns about the war. That being said, it makes sense that people would jump into the gold market for some type of safety and possibly even a way to add a little bit of momentum to their portfolio.
The gold market has been in an uptrend for quite some time and it's also worth noting that we have just formed a very short-term double bottom based on the $5,000 level. This tells me that the market wants to stay above that large round psychologically significant figure and perhaps try to get to the $5,500 level.
Market Support Levels
The 50-day EMA is likely to offer support as well as it is near the $4,900 level. This uptrend is based not only on war, but it's based on the fact that central banks around the world continue to accumulate gold and central banks around the world are likely to cut rates at the same time.
So, with all of that being said, there is a high demand for gold in a very risky geopolitical environment. I think it makes quite a bit of sense that we could see the gold market continue to grind its way to the upside. If we were to break down below the $5,000 level, then the 50-day EMA offers support. Anything below there, then we probably go crashing down to the $4,600 level, which is the bottom of the overall consolidation area for the last several months. Regardless, I think you've got a situation where you're taking advantage of cheap gold anytime you can get it.