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Christopher Lewis

Gold markets have rallied during the trading session on Wednesday, breaking towards the $1935 level. This was an area that had seen selling pressure previously, so it should not be a huge surprise to think that perhaps we are going to pull back just a little bit. Having said that, we are moving solely on the idea of stimulus and nothing else, as it is by far the biggest headline. If the US dollar gets clobbered, and right now it certainly looks as if it is going to, that should continue to push the gold markets towards the $1960 level above.

Gold Price Predictions Video 22.10.20

The 50 day EMA sits just below the candlestick for the day, which of course could give more credence to the idea of going higher. At this point, the $1900 level looks to be supportive, but even that is somewhat tentative if we do not get stimulus or some type of major move in the US dollar to the positive side. If we break down below there, it is likely that we are going down to the $1850 level where we had bounced from previously.

After that, the $1800 level is massive support that I would be all over and would be willing to be very aggressive around. The 200 day exponential moving average sits just below that level, so it is quite literally the indicator that some traders will use to define the overall uptrend. At this point, the market is trying to break out, but you may need to look for short-term pullbacks in order to pick up little bits and pieces of value.

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

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