As the gold markets broke down during the trading session at the end of the week, it reached down towards the $1,280 level, an area that seems likely to offer support, as it expects a bounce from there during trading sessions.
The 20 days EMA can be seen there, with previous up trending channel coinciding with that level and setting course to what could be horizontal support.
Being this the case, the USD could soften once more, and traders will start looking towards the $1,300 level. Breaking above that level could send Gold markets to higher levels.
As the Federal reserve currently looks to remain on hold at the very least, the USD will be sent to a negative course on a longer-term period. This would generally lift gold, giving an opportunity to reach towards the $1,300 level again.
At last, selling wouldn't be possible at the moment now that the market got the chance to see this massive move higher, it comes now to finding value and later, after having a bounce, money will flow back into the market place.
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