(MENAFN- Daily Forex) Gold marketsfell initially during the trading session on Wednesday as the Federal Reserve cut rates and sounded a little bit more less dovish than people had hoped. However, we are sitting right on a trend line then of course the 50 day EMA. Beyond that we also have the $1500 level offering a bit of support, so it does make sense that it's only a matter of time before gold should bounce. As long as we can stay above the $1490 level, goal should continue to find a bit of interest. Keep in mind that it's not only about the Fed when it comes to gold markets, it's also about geopolitical concerns and the like.
The market has been very noisy, and as a result it's very likely that we are going to continue to see a lot of people run towards the gold market because of not only safety, but just if nothing else stability . After all, in an environment where stability has not been the markets forte, a lot of traders will be looking for some type of reason or asset to get involved with.
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If we were to break down below the 50 day EMA, we could then go looking towards the $1450 level, which is the top of the previous ascending triangle. That is an area that should offer a significant amount of support, as the longer-term traders will be looking to pick up a bit of value. Beyond that, there are a lot of concerns when it comes to not only the central banks but the US/China trade relations and a slowing global economy. With that, it's likely that dips will continue to be bought, and towards the end of the day we are already starting to see a bit of that. With that being the case, I am bullish of gold still, but I recognize that it is probably going to be a very noisy affair going forward as the Gold markets have been a bit overbought until recently. While it is partially a run towards safety, it's also a partial run away from fiat currencies that looked to be a complete mess going forward. Ultimately, this market could go back towards the $1550 level, maybe even the $1600 level which is the top of the overall consolidation that the market has been testing more than once.
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