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Christopher Lewis

Gold markets have gapped to the upside to kick off the week, as we continue to see buyers of the precious metal. We have turned around to fall and fill the gap, but at this point it looks as if the market is stalling a bit. That is not a huge surprise, especially considering the nasty candlestick that we formed on Friday. The US dollar gained a bit during the trading session on Friday, that of course had a lot to do with what happened with gold. I think at this point the $2000 level underneath should be thought of as massive support, although we are almost $50 away from that level. I certainly have no interest in shorting this market, but I do like the idea of buying dips as they occur.

Gold Price Predictions Video 11.08.20

I recognize that it is difficult to watch this market if you are not involved in it, but quite frankly you need to make sure that you are getting value, not “chasing the trade”, which is the greatest way I know of to lose money in the markets. If you are not involved in gold but continue to see it rise, the easiest way to play this market is to short the US dollar against another currency such as the Australian dollar. However, if we break down towards the $2000 level and see a bit of a bounce, then it might be time to buy. After that, the $1933 area could offer a bit of support as well as there was a previous gap.

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

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