(MENAFN- Daily Forex) gold markets rallied a bit during the trading session on Thursday, but you need to keep in mind that it was Thanksgiving. In other words, liquidity would have been a major issue, and of course, you must worry about the fact that there were only limited hours of futures trading. In other words, there's not a whole lot to go on other than the way the market has been behaving over the last couple of days.
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Keep in mind that the FOMC Meeting Minutes came out late on Wednesday, they suggested that some of the Federal Reserve governors are starting to think about slowing down raising rates, this might be all it takes to get gold going higher. The 200-Day ema sits right around where we are right now, so if we can break above that handily, it will have a lot of algorithm-based traders buying. At this point, you can also look at the $1800 level as a potential target, and anything above there almost certainly opens up the possibility of a move to the $2000 level.We May See
Strenght in the Gold Market
Underneath, there is a significant amount of support near the $1725 level, and then again at the 50-Day EMA. The 50-Day EMA is an indicator that a lot of people will be paying attention to because it is quite often followed as a bit of a trendline. You can see just how influential it had been previously, as we fell during most of the year. At this point, we must ask whether or not gold has bottomed, and from a technical analysis standpoint, you could make that argument.
After all, there is a“W pattern” that has just kicked off, and we are back above the crucial $1680 level, an area that has been important multiple times through the years and was at the bottom of the overall consolidation area. We broke down through it but could not pick up enough momentum to truly break down cold so one has to wonder whether we have at the very least a correction coming, if not a complete trend change. A lot will ride on what the federal reserve has to say in December, but between now and then we may see a bit of strength in the gold market, as interest rates continue to drift lower.
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