Gold markets have rallied again during the trading session on Friday after initially gapping lower, reaching towards the $1750 level, the beginning of significant resistance. In fact, this is the top of a major rectangle that has been so prevalent in this market. It is not until we break above the $1775 level that I am a buyer up here though, as I would prefer to see a lot of resistance broken before going long. However, if we get a little bit of a pullback, I think it makes quite a bit of sense that there would be value hunters underneath, especially near the $1700 level. The $1675 level underneath is the bottom of that “support range.”
Gold Price Predictions Video 15.06.20
I do not have any interest in shorting this market, so even if we break down below there, I would be looking for a bit of a “reset” in the bullish trading near the $1600 level. With that, it is worth paying attention to as the 200 day EMA is in that neighborhood. Over the longer term, I do believe that gold has quite a bit of bullish pressure underneath and we should go looking towards the $1800 level, possibly even the $2000 level after that. Quite often, consolidation leads to continuation, and it is possible that is what we are seeing here. The market is going sideways, coinciding with a lot of confusion as seen in other markets as well. Quite frankly, the world is deciding whether we are “risk on”, or “risk off.”
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