Christopher Lewis
Add to Bookmarks

Gold markets initially dipped during the trading session on Tuesday but found plenty of buyers underneath the turn around and show signs of life yet again. This is a market that has shown a lot of resiliency, and quite frankly I think it is likely that it will eventually break above the $1800 level. Once it does, it will have a similar effect to a “beach ball being held under water and released”, meaning that it will be like that beach ball once the inertia breaks the surface of the water in shoot straight up in the air. $1800 has been an area that has been crucial for gold for quite some time, and therefore it should not be surprised at all to see that level bring in fresh buying.

Gold Price Predictions Video 01.07.20

Gold remains a “buy on the dips” type of market, as the Federal Reserve does everything it can to liquefy the markets. This means trying to cheapen the US dollar, which of course has an effect on gold itself. When priced in other currencies, gold has already broken out, so it is only a matter of time before the same thing happens here. The $1750 level should be massive support, so I do not necessarily think that we break down below it but even if we did, the 50 day EMA comes into play shortly thereafter. I have no interest in shorting gold, and quite frankly do not even have this scenario where that begins to be a thing in my vocabulary. It is exceedingly rare that a market is essentially a “one-way bet”, but gold is certainly one of those.

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.

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