(MENAFN- Daily Forex)

• The gold market initially did start falling during the early part of the trading session, reaching the crucial 50 Day EMA.
• This is an indicator that a lot of people will be paying close attention to, and you should think of it as a potential trend line.
• After all, when you look back at the totality of several months, you can see that the 50 Day EMA has in fact been very important.
• Any move below that is something worth paying attention to, but I do see several support levels underneath there that could come into the picture as well.

External Noise

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Keep in mind that there is a lot of external noise at the moment, and therefore it makes a certain amount of sense that gold remains noisy. Remember, gold is a safety asset, and the fact that we had an announcement from the White House during the trading session than Japan and South Korea are both going to face a 25% tariff on August 1 due to a lack of movement in negotiations has people throwing money around the market in random moves.

EURUSD Chart by TradingView

Gold of course offers a little bit of safety, and that makes a certain amount of sense that people would've look to it for some type of portfolio protection. Regardless, this is a market that has been in an uptrend for some time, and one would have to assume that there is still a little bit of a“bid in the market” as we go farther in time.

If we do break down below the 50 Day EMA, then I'm looking at the $3200 level as a support level, and an area that I would be very interested in buying on a potential bounce. If we break down below there, then I start looking at the $3000 level, which is a large, round, psychologically significant figure, and an area where we have seen action in the past suggesting that there are people willing to get involved. I'm looking for a pullback and a bounce to take advantage of, which we may have just seen on Monday. The $3500 level continues to be the longer-term target.

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