Gold finds buyers amid risk aversion, potential central bank actions. With interest rates rising, gold is buoyed by safety asset demand. Supports at $2200, $2150.

At this point in time, the market looks as if it is running away from risk, meaning that a lot of traders are buying gold due to the fact that it is considered to be a safety asset, and with everything that’s going on in the world right now it does make a certain amount of sense that we would see people piling into this asset. However, there are other things going on right now that could continue to drive gold higher. Interest ratesInterest rates continue to rise in America, but at the same time traders are betting on the fact that the central banks will step in and cut rates between now and the end of the year. All things being equal, this is a market that continues to benefit from the expectations of central bank monetary policy, and for that matter central banks themselves. After all, central banks have been huge buyers of gold over the last couple of years, and therefore we always have a buyer on every dip given enough time.Underneath, the $2200 level is an area that previously has been resistance, as there is a significant amount of market memory attached to it, it does make certain medicines that people would be looking for support. If we were to break down below there, the $2150 level then offers support as well. The 50 day EMA is racing toward the $2150 level, and therefore I think that will be your “floor the market. That being said, the $2075 level is the absolute bottom of the trend from what I can see.More By This Author:Nasdaq 100 Forecast: Continues To See VolatilityBTC/USD Forex Signal: Digest The GainsSilver Forecast: Slams Into Resistance