Gold markets have rallied a bit during the trading session on Wednesday as we continue to see the markets climb. We are above the $1600 level so it’s likely that we will continue to fulfill a longer-term target of $1800. I think at this point short-term pullbacks continue to offer buying opportunities that you can take advantage of, with the 50 day EMA underneath operating as a bit of a “floor.” For what it’s worth, it’s important to notice that the $1550 level has offered support a couple of times, and now that the 50 day EMA is in that same area, it should be very important for the market overall.
Gold Price Predictions Video 20.02.20
Central banks around the world continue to keep loose monetary policy in effect, and that should continue to be a major driver of gold going higher. Furthermore, there is a lot of concerns when it comes to the coronavirus and many other geopolitical and global issues, so at this point I think gold has a whole host of reasons for buyers to get involved. At this point, pullback should be thought of as offering value, and therefore it’s likely that the market is a “buy on the dips” type of situation. At this point, I don’t have any interest in trying to short this market, because quite frankly it is unlikely to see some type of major turnaround as far as this chart is concerned, so I think it’s obvious that we are on the precipice of a much bigger move. The only thing keeping the gold market down at this point is the fact that the US dollar has strengthened.
This article was originally posted on FX Empire
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