Gold Price Facings Headwinds at the 1600 oz Mark

Gold Price Facings Headwinds at the 1600 oz Mark

$GLD, $XAU

Gold markets rallied some Thursday, reaching towards 1580 an area that has attracted attention recently, but longer-term it’s likely that the market is going to try to get to the psych mark at 1600.

At this point, gold will have to break through headwinds at 1600, so a daily close above that Key resistance mark could kick off the next leg North. At that the market begins looking towards 1800 level.

Now, the market should continue to see buyers on dips, as the 50-Day EMA is starting to reach towards current trading. The 50-Day EMA is an indicator that savy people pay attention to, and it does seem to be Key in the gold market.

Looking at this chart, if we were to break down below the 50-Day EMA then look towards 1500. There, the 200-Day EMA should come into play, which is a longer-term indicator that will attract a lot of attention.

Expect the price to rise but the Big Q is not so much as if it happens, but when.

Participants are buying dips as it gives an opportunity to buy gold “cheap” in building up a core position. No interest in shorting gold in here.

Have a terrific holiday weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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