The Gold markets have broken above 1650, but gave back the gains showing signs of exhaustion.
Gold futures settled 1.40 lower (-0.1%) to 1,643.00 oz as action quieted down a bit following Tuesday’s spike higher, and ,DXY is up about 0.3% at 97.40.
Now if the market break down it is likely that the market then goes to the resistance turned support at 1600, the psych mark where there will be lots of buyers for value. The 50-Day EMA offers strong support.
How we see it
If the market breaks above the Top of the range, then the gold market has the ability to reach to 1700 Key resistance. Breaking above that mark allows the market to look to 1800. So, there is no interest in shorting this market, because the world’s central banks are cutting interest rates and loosening monetary policy, and that works in favor of precious metals, especially gold as it is not an industrial component, it is Money!