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Gold Price Forecast – Gold Markets Continue Upward Grind

By:
Christopher Lewis
Published: Jul 31, 2020, 16:02 UTC

The gold markets rallied rather significantly on Friday and even touched the $2000 level in the front contract. Then they have pulled back just a bit.

Gold

Gold markets have rallied significantly during the trading session on Friday, reaching towards the $2000 level before pulling back. I think this could be the beginning of a bit of profit-taking and it should not be surprising at all that the markets were pulling back due to the fact that we were heading into the weekend. After all, there have been good profits to be had in the gold markets, so there is no reason to simply let them disappear.

Gold Price Predictions Video 03.08.20

Nonetheless, I am looking for a buying opportunity underneath and will try to find some type of supportive candlestick that I can take advantage of. The uptrend line comes into play, just as the 20 day EMA will be. Ultimately, we could just bust above the top of the candlestick for the day, but I do not like that trade, because then gold becomes extraordinarily parabolic, something that I am not a big fan of dealing with.

Look for value, it is the best way to trade this market and quite frankly it is probably the best way to trade in the market. Simply trading with the trend is doing the same thing, because you are buying things when they are a bit “cheap” or selling things when they become a bit “expensive.” That is the big secret to trading: recognizing that it makes no sense to try to outsmart the market. Yes, there might be an opportunity for selling here to make a bit of money, but it is much less stressful simply go with where the market wants to go longer term. The Federal Reserve will ensure that we go higher.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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