(MENAFN- Daily Forex) Advertisement Afraid of market volatility? Gold is a great safe haven asset
trade gold now! gold markets encountered a significant test as they hovered around the $1960 level, probing a major uptrend line during the recent trading session. The presence of the $1950 level, coupled with the backing of the trendline, indicates the potential for solid support to emerge. However, attention must also be given to the 50-Day Exponential Moving Average (EMA) positioned just above, suggesting the existence of resistance. Consequently, the gold market finds itself in a state of flux, searching for direction in the near future.Explosive Move Expected in the Short Term
The trajectory of the US dollar has a notable impact on gold, with the two often displaying a negative correlation. This relationship appears to be resurfacing, which could pose headwinds for gold. Nevertheless, the underlying need for wealth preservation could eventually resurface, driven by concerns about the global economic and fiscal landscape. Should a breakdown occur from the current levels, the next significant area of support is likely to materialize near the $1900 level, followed by the 200-day ema . This confluence of support factors could establish a firm floor in the market, considering the overwhelmingly bullish trend observed thus far. It is important to note that the market may exhibit considerable volatility, warranting caution when determining position sizing. However, once clarity emerges, momentum could swiftly accelerate, potentially triggering a significant move in gold prices. Investors should exercise diligence and refrain from overexposure before the market decides which direction will prevail in this battle. It is crucial to remain vigilant, as gold has a tendency to move rapidly once market participants make up their minds about deploying capital. Brace yourself, as an explosive move is likely to materialize in the short term. Ultimately, gold markets underwent a test as they teetered near the $1960 level, examining a crucial uptrend line. The combination of the $1950 level and the supportive trendline suggests the presence of potential support. However, the 50-Day EMA overhead introduces resistance, leaving the market in a state of uncertainty. The influence of the US dollar on gold cannot be overlooked, as the negative correlation reemerges. Ultimately, as clarity emerges, the market could witness a substantial surge. Traders should exercise caution and prudence while awaiting a decisive move, as gold's rapid price movements demand careful risk management . Prepare for an imminent explosive move, as the gold market navigates through its current state of flux. our gold forecast ? We've shortlisted the most trusted gold brokers in the industry for you.
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