The gold market started to rally early in the Wednesday trading session, as we are looking to find some kind of momentum. With the world on fire, it is surprising that gold struggles a bit to hold gains.
Gold
Despite the fact that the world's on fire, gold is not getting a bid, and this is mainly due to the US dollar remaining resilient. Furthermore, you also have to understand that the gold market recently had seen a pretty dramatic sell off, so in that environment, I believe you have to look at this as a market where you have to watch the $5,000 level very closely as it should be a bit of a floor.
But if we were to break down below there, then we would test the 50-day EMA near the $4,857 level. To the upside, if we were to break above the $5,200 level, then the $5,400 level could be targeted, followed by the $5,500 level.
Navigating Volatile Moves and War Headlines
There are a lot of noisy moves out there just waiting to happen and with that being the case, I think the best thing that you can do is, regardless of which direction you choose to trade, which could be a buy on the dip scenario, you are probably best served with smaller positions as the volatility will almost certainly cause a lot of problems.
Ultimately, I think we're still trying to find the comfortable range and with all of the war headlines out there, I think things continue to be very messy. I do favor the upside, I don't want to short gold, at least not yet, and with that being the case, you just look for short term opportunities. You're probably stuck trading 15-minute charts, quite frankly. Longer-term trading is difficult, but the buyers are likely to be in control over the long run.