The gold market fell a bit during the trading session on Wednesday to reach towards the 200-day EMA.
That being said, we are trying to bounce a little bit, so we'll have to see how this plays out.
Interest rates in America are a little bit lower, but there are a lot of concerns about the Middle East and whether or not we are ever going to actually get some type of peace agreement. After all, it seems like every time there's a little progress made, somebody comes out and claims the other one is lying. That has been a big driver of interest rates going higher for some time and that has really hurt the gold market over the long term.
Technical Outlook and Ceilings
That being said, I think this is a market that will remain very choppy and noisy, and I do think it's probably a situation where it's difficult to put on a huge number of contracts at the moment anyway. The $4,600 level for me at least is a short-term ceiling. If we can get there on a bounce, that would be great, but I also think that is an area that could be some trouble. If we can break above there, then we could go looking to the 50-day EMA, which is an indicator that a lot of people will watch.
Top Regulated Brokers
If we fall from here, then the most obvious place to watch is the 200-day EMA, which of course is an indicator that attracts a lot of headlines and trading opportunities. Breaking below the 200 50-day EMA would be very negative, and I suspect at that point in time we would probably see interest rates in America climb. I think ultimately, we're just bumping along the bottom here looking for the next major driver.
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