The gold price decreased slightly after reaching the highest level in the last two months. However, it managed to hold above the critical level of $1,950 for now. According to TDS economists, there are signs that the buying is running out. On the technical front, the situation is a bit complicated!
TDS: There are signs that purchases are sold out!
The painful trade in gold markets is likely to continue, according to economists at TD Securities. However, the first signs that the purchases were exhausted began to appear. In this regard, economists make the following assessment:
The pain trade for gold shorts may still extend a bit further. But we now predict that prices need to rise well above the $2,000 range to trigger large-scale algorithmic long buying.
According to economists, unless the price of gold rises significantly, this indicates that purchases are exhausted. It also opens the door to potential algo sales below $1,945. Still, more meaningful selling activity from other groups will be needed for the algorithms to regain some of the shorts south of $1,875, economists say. This shows that it is difficult for prices to easily regain their recent lows.
Gold price technical outlook: Markets pause
cryptokoin.comAs you follow from aThe gold market did little during Thursday’s trading session. Cbecause technical analyst Christopher Lewisaccording to high marketWe continue to see it coming into play. However, he went a little further… The analyst explains what he sees in the technical picture of gold as follows.
Critical levels for gold are $1,950 and $2,000
The gold price paused slightly during Thursday’s trading session. Because it seems like we continue to see a lot of geopolitical concerns around the world that could push gold higher. However, we will probably need to take a breather in the short term. Below that, the $1,950 level is an area where many people will be paying close attention. Therefore, it is possible that it may provide some support. If it breaks below the $1,950 level, then it is likely to decline towards the 50-Day EMA.
On the other hand, if we break above the top of the previous session’s candlestick, we could possibly be looking at the $2,000 level. The $2,000 level is a big, round, psychologically significant number that many people will be paying attention to. Of course, it has shown significant resistance in the past. In other words, I don’t know how much further upside we can go unless we continue to be concerned about geopolitical risks.
Does the gold price indicate a “buy the dip” strategy?
It should be noted that the bond market also has a say. If interest rates in the US continue to rise, this will also work against gold. This is a market that will continue to be very noisy. However, I am having a hard time selling this market until it breaks below the 50-Day EMA. This is a market you can’t chase. Because the war in Gaza is at the forefront of how people do business. Moreover, it remains at its center. So he’s clearly acting out of pure emotion right now.
Longer term, we will have to wait and see if $2,000 remains resistance if gold continues to rise. But until something changes, I have to look at this as a market where it’s going to be very difficult to get your hands around it. However, it appears to be bullish enough on the short-term charts that more of a “buy the dip” strategy would probably work.
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