• Gold markets have fallen rather significantly during the trading session on Friday, as we are testing a couple of different things that make me pay close attention to this chart.
• While the market has been going sideways for a while, it does make a certain amount of sense that we might see traders paying close attention to the 50 Day EMA, as well as the uptrend line.
• All things being equal, this is a market that I think probably remains somewhat sideways, and perhaps even consolidated, but it is worth noting these couple of small technical indications of potential short-term support.
   

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Longer Term Uptrend

The longer-term trend has been sideways, and I just don’t see how that changes anytime soon. With that being said, I think we’ve got a situation where traders are looking at this through the prism of a quiet summer range and may be a little bit of consolidation after what had been such a vicious run higher. All things being equal, this is a market that I think has to make a bigger decision, but it’s going to be difficult for this to happen over the next several weeks as this is the wrong time of year to look for any real movement unless of course we get some type of random headline.
 

The larger consolidation area is bordered by the $3200 level on the bottom, and the $3500 level on the top. I think we continue to see a lot of noise overall, and I think shorter-term traders will continue to be attracted to this market, as there is such a clear couple of levels. If we were to break down below the $3200 level, then I think you’ve got a potential drop to the 200 Day EMA, near the psychologically important $3000 level. On the other hand, if we were to break above the $3500 level, then the market goes looking to the $3800 level based on the “measured move.” Patience will be key when trading gold, or just about anything else this time of year.

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