Gold Markets Trying to Break Out

Gold Markets Trying to Break Out

Gold markets have rallied a bit during the course of the trading session on Monday to show signs of life again. We broke above the highs of the massive candlestick on Friday, and that is a good sign. It is possible that we are going to go higher and try to fill that gap above, but that does not necessarily mean that is going to be easy to get there. In general, gold has been struggling to hang on to gains though, so whether or not we can break through that gap is a completely different question altogether.

Looking at this chart, the 200 day EMA underneath at the $1802 level continues to be supportive, and any dip below there will probably find buying pressure again based upon what we have seen of the last couple of days. If we were to turn around a break down below the $1780 level though, that would be a very negative turn of events and send sellers into this market that could have gold looking very bearish indeed.