Gold Price Forecast – Gold Markets Gap To Kickoff WeekGold markets have gapped again on Monday to kick off the week, as we have a lot of fears around the world. Gold is one of the first places that traders will go looking towards when there are a lot of concerns about global growth, or fears about things such as the coronavirus slowing down the Chinese economy.
Gold markets gapped to kick off the week, as fears about the coronavirus slowing down the Chinese economy has certainly hit the markets. There are a lot of other factors out that could come into play as well, not the least of which would be the German Ifo Business Climate figure that disappointed the markets. Quite frankly, as long as there are concerns about the global economy, gold will continue to have a bid. From a technical analysis standpoint, it looks like a very bullish market as well, with the $1550 level looking very much like it’s going to be support.
Gold Price Video 28.01.20
To the upside, the market looks like it has quite a bit of resistance at the $1600 level. The $1600 level of course is crucial, as it is a large, round, psychologically significant figure, and of course an area where we had seen sellers come back in and push this market to the downside. If we can break to a fresh, new high, then the gold market should continue to grind much higher. The 50 day EMA underneath of course is massive support, and therefore I would consider that to be the “floor” in the market. Pullbacks continue to be buying opportunities going forward, as it seems like buyers come in every time we dip. I have no interest in shorting gold, although if we broke the 50 day EMA to the downside I’d have to reassess some things.
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