FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
Gold

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.

Advertisement
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.

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.

Advertisement
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