Remember that there is a severe lack of liquidity at the end of the year and gold can be somewhat volatile. The gold market is in a fairly strong downtrend on Thursday as the US dollar had a strong session. With central banks around the world raising interest rates, you would think that gold should do well, but at the same time, the economic outlook looks pretty bleak. Therefore, there are fears that tight monetary policy aimed at slowing down may cause some confusion. This will make people run to the US dollar, not to mention that Jerome Powell was so funny during the FOMC statement and the press conference last session. Advertisement It’s a new week, are you ready for a new broker? Open an account with a top broker TRADE NOW But gold will probably do well and I guess at least it’s probably a „buy the dip” scenario. However, if the US dollar starts to disappear and acts like a wrecking ball again, gold will not be spared, at least not soon. However, it is worth noting that gold and the US dollar can both rise at the same time, which was essentially the case in the 1980s. This was the last time we saw a slowdown in growth and inflation, so we previously thought both could benefit. Gold May Be Volatile Due to Lack of Liquidity Currently, the 200-day EMA is just above the $1,750 level and should provide some support. The 50-day EMA is right below the same area and it looks like if we can bounce back a bit, we’re setting up for a „golden cross”. I don’t read too much into it, but long term traders tend to see it as a potential signal. A break of both moving averages would be very negative and could send gold back to $1700, followed by possibly the $1625 level. Remember that there is a severe lack of liquidity at the end of the year and gold can be somewhat volatile. It can be blurry at best, so the next few weeks can be very difficult. Pay attention to the moving averages below as they may offer a buying opportunity but I wouldn’t touch gold right now as frankly you can lose a lot of money due to lack of trading volume and what appears to be noise.