The market is highly unlikely to see an easy rally over the next few days, so it’s probably only a matter of time before we see more back and forth.

Gold markets moved back and forth during Monday’s trading session, as we continue to see a lot of up-and-down action just below the 50-day EMA. Quite frankly, when you look at the short term charts it is obvious that the markets don’t have any real directionality at the moment, so with that in mind, this is probably the one that will continue to attract short term traders. That being said, the last thing you want to do is put in a huge position, so you need to be very careful about how aggressive you are.

The market has certainly been getting a lot of noise lately, so I think you need to pay close attention to the 50-day EMA above, and perhaps more specifically, at the $ 1,800 level. Breaking the market above the $ 1,800 level on a daily close could open some upside momentum, perhaps providing an opportunity to reach the $ 1,830 level, but it will take a bit of momentum for this movement to happen. . All things being equal, it doesn’t look like we have the kind of momentum right now, but this daily close would of course be a huge turnaround.

On the downside, if we fall below the $ 1782 level, which happens to be the low of Friday’s session, then it is very likely that we are looking towards the $ 1760 level below, an area that has offered some support recently. Keep in mind that gold has a small negative correlation to returns in America, and everyone and their mom are currently watching the 10-year return right now. The higher it goes, the more gold is likely to struggle, but it certainly looks like the bonds are oversold, so I think a rebound to the top of the range in the gold market is very possible.

You should also keep in mind that gold has a small trading aspect of security, but at the moment this is probably being ignored due to the fact that everything is sold, not just gold, but stocks, bonds, cryptocurrencies, and of course commodities. Because of this, the market is very unlikely to come off easily over the next few days, so I think it’s probably only a matter of time before we see more back-and-forth.