Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

Gold markets went to the upside during the trading session on Friday, but then turned around to break below the 50 day EMA. All things being equal, the 50 day EMA is relatively sideways, which shows that there is no real decisive momentum one way or the other, and it is likely that we continue to grind sideways in the short term. Longer-term, I am much more bullish on gold than anything else, due to the fact that the central banks around the world will continue to liquefy markets, which of course drives up the demand for hard assets as fiat starts to fall.

Gold Price Predictions Video 19.10.20

The gold markets have quite a bit of support underneath, near the $1850 level. Ultimately, I think that even if we break down through their it is likely that we are going to go looking towards the $1800 level. That is an area that was the scene of a recent break out, and therefore there should be a significant amount of “market memory” in that area that should now offer support. Because of this, I would be looking for some type of bounce to take advantage of.

That being said, I like the idea of finding value in a market that will clearly go higher over the longer term all things being equal. In the short term though, the market is starting to weigh in the idea of stimulus being delayed, so the US dollar has had a bit of a reprieve. With that in mind, I buy dips but I do it in small bits and pieces so I can build up a larger position.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.