We have left behind a week that included the FOMC interest rate announcement and the April non-farm employment report. After this, analysts look at the dollar and technical indicators to gauge the likely direction of gold prices. Christopher Lewis, market analyst at FX Empire, says gold continues to strengthen. Justin Low, FX analyst at ForexLive, looks at the shorter-term technical outlook.
Gold is getting stronger: It’s still a market you want to buy!
The gold market initially pulled back slightly to fall below the 2,300 level during the trading session on Monday. However, he later returned and showed signs of life. The market currently sees $2,320 as a bit of a hurdle. However, given enough time I think we will probably move higher. Of course, the Federal Reserve is still in the picture. Therefore, you will need to pay close attention to interest rates in the US. And of course people are worried about inflation. But it’s also possible that this is actually helping gold. It is also necessary to take into account geopolitical problems around the world. This is also likely to help gold. And frankly, just looking at the momentum on the chart helps gold.
So all else being equal, I think we are still in an uptrend when it comes to the gold market. Therefore, it is a one-way trade where you do not want to be short in the gold market. Above is the $2,360 level and this is a short-term barrier. But if it breaks this, then I think it will look towards the $2400 level fairly quickly. There is an important support below it at the $2,280 level.
The 50-day EMA is also located just below and of course comes into the picture for support. Therefore, in terms of technical analysis, I think he continues to buy on the decline. Frankly, fiat currencies around the world are being hollowed out as we just spend, spend, spend, and that includes the US dollar. Yes, the US dollar is stronger than other currencies. But this is only about other currencies. Therefore, the market still looks like one you’ll want to buy.
“This target will change the short-term trend to more bullish!”
Justin Low, Currency analyst at ForexLive, looks at shorter-term support and resistance. “The hourly chart is very much in focus for gold right now,” the analyst says. Low states that with the decline of the dollar on Friday, spot gold found a solid bid up to $2,320. However, it notes that it faced bids at the 200 hourly moving average (blue line) before returning to $2,280. “The weekly low just above this was maintained before the price movement stabilized,” the analyst said. But for the last week it’s still there! “So we are sitting in and around $2,300,” he wrote.
Low says gold “is currently still facing resistance from its 200 hourly moving average at $2,317.” The analyst said, “Sellers remain close to the short-term key level. “This limits further rises for now.” says. Finally, Low draws attention to the following level:
However, gold buyers stand ready to make the most of it once the short-term key level above is broken. This would turn the short-term trend more bullish, with the April 26 high of $2,352 a notable target. But at least for now, the above technical stance should still be respected.
The opinions and predictions in the article belong to the analysts and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!