Christopher Lewis
Add to Bookmarks

Gold markets have rallied a bit during the trading session on Tuesday as more optimism of a quick election result has crept into the markets. Whether or not that is true is totally irrelevant, because this comes down to the US dollar either rising or falling. The argument on Wall Street is that the Biden administration would be extraordinarily loose with stimulus, but then again so will Trump. The idea is eventually the US dollar gets crushed. However, there are other things out there moving markets.

Gold Price Predictions Video 04.11.20

Once we get past the election, I suspect that we may get a bit of a pullback in gold as the US dollar may get a little bit of a bid. This will be especially true if the elections do not get called rather quickly. Quite frankly, I do not see that happening but that is the scenario right now. At this point time, is very likely that the market will continue to back and fill, meaning that we will probably drop yet again. I think that the $1850 level will be massive support, followed by the $1800 level.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

That being said, the 200 day EMA sits just below there, so it does make quite a bit of sense that we would see a lot of support in that area. Furthermore, the market had broken out from that area and I think a lot of value hunters would be interested in this market. With this, I am looking to pick up value, not necessarily short the market, so I think that the “buy on the dips” mentality is going to continue to approach this market.

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