“The Movement Is Not Surprised” How Did the Gold Price Last This Week?
Fxempire writer Christopher Lewis commented on this week’s developments regarding the Gold price from today’s corner.
Lewis’s views were as follows.
Gold markets contracted as we continued to see too much money pouring into the “risk” of the trade throughout the week. There was a drop in the price of gold and it fell below the $ 1800 level.
A Tough Week
The gold markets had a rough week and the “risk” of trading dropped below the $ 1800 level when it became fashionable again.
However, we are testing the 50-week EMA and approaching an area where it should offer support due to previous resistance we saw at the $ 1750 level.
What’s more, we are approaching the 38.2% Fibonacci retracement level so we can of course enter the game. All of these come together for potential support, so pay close attention to the upcoming weekly candlestick as it may indicate that the overall trend is continuing.
Until then, I would have been a little hesitant to be short because we’re approaching a significant amount of movement on the chart.
Gold May Make a Comeback
Moreover, if there is some kind of big move against the US dollar, it could cause gold to return as well. That being the case, I think what this market requires may be a simple amount of patience. Ultimately, central banks around the world will continue to throw liquidity into the markets, so it may be thought that gold is up to speed again.
I am not interested in shorting the market, we are clearly looking forward to a big rise and there is no point in trying to fight it. As the US Dollar Index struggles to find support at the 92 level, it is possible to see a bigger move.