Baxia Markets
March 13, 2023

Gold continues to find support near the 200

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Uncertainty with Gold market after a major selloff candlestick

The gold market experienced a bit of a rally during Thursday's trading session, but concerns remain about its future prospects. The market found support at the 200-Day EMA, but a major selloff candlestick suggests that this support may not hold. A breakdown below the 200-Day EMA could lead to a drop to the $1800 level, which is also the 50% Fibonacci level.

Gold Market

A negative sign would be a breakdown below the 50% Fibonacci level, leading to a drop to the $1755 level where the 61.8% Fibonacci level sits and may offer potential support. However, if the market were to drop below this level, it could send the market even lower, potentially returning to the lows that reached before the rally began.


The US dollar has a negative correlation to gold, and rising interest rates pose a concern for the market. There have already been three major selloff candlesticks since the market reached its high price. This volatility is reflected in the market's position between the 200-Day EMA and the 50-Day EMA indicators.


Traders need to be cautious with Gold market

Traders should approach the market with caution and focus on shorter periods. Position size should be kept reasonable, as the only thing traders can control is their own position. It is unlikely that traders will want to go "all in" until the market breaks out of these moving averages.


Overall, while the gold market has found some support at the 200-Day EMA, there is a risk that it may break down below this level, potentially leading to further declines. Traders should exercise caution and focus on shorter time frames while keeping position size reasonable. It may be wise to avoid large trades until the market shows signs of breaking out of its current range.


With all the noise coming out of the bond market and the US dollar, gold will continue to get pushed around on a daily basis. The market is likely to remain choppy and range-bound for the time being, and traders should be prepared for continued volatility. However, once the market breaks out of its current range, traders may have more confidence and may want to consider larger trades.

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