Gold markets continue to see a lot of volatility, as we approach the $1750 level yet again. After forming a major hammer for the trading session on Wednesday, it makes sense that we bounced a bit from there. The 50 day EMA has also offered support, so therefore it makes sense that buyers would have been attracted to that level as well. Furthermore, it is formed right about the $1700 level.
That being said, if we were to turn around a break down below the hammer, then it would be extremely negative. At this point in time, it is likely that the market will offer quite a bit of support underneath there though, so I find that to be very unlikely to happen. If it does, then I would look to “reset” to the upside.
Gold Price Predictions Video 29.05.20
The $1600 level will be massive support again, if we do get down there due to the fact that the 200 day EMA. Ultimately, this is a market that continues to see a lot of buyers on dips and quite frankly it should, due to the fact that the central banks around the world continue to print currency as fast as possible, and of course there are a lot of economic concerns out there when it comes to the global economy, trade, US/China relations, and a whole host of other things. With all of this, it makes sense that gold should be one of the better performing assets.