Gold Price Forecast – Gold Markets Pullback
Gold markets fell during the trading session on Thursday, as the markets continue to look a little overextended for the short term. All things being equal though it’s very likely that we will find buyers given enough time, especially near the $1525 level. Ultimately, this is a market that I think will continue to be very noisy but keep in mind that it only takes some negative headline out there to get this market fired up again.
Price of Gold Video 10.01.20
Gold markets will of course react to geopolitical concerns, which have been abated in the short term, as we have seen a lot of good signs coming out of both Iran and the United States in the short term, but we also have to worry about the US/China trade situation, and a whole host of other issues. Beyond that, central banks around the world continue to loosen monetary policy, so at this point it makes sense that we should see gold come into demand. Beyond that, some of the US economic numbers recently have been a bit soft as of late, suggesting that perhaps the Federal Reserve may have to loosen monetary policy going forward. If that’s going to be the case, it’s very likely that the gold markets and precious metal markets in general should continue to demand some type of upward pressure. At this point, I still like buying dips, and I don’t necessarily like the idea of shorting although I do recognize that we could pull back further. To the upside, it’s obvious that the $1600 level causes a lot of resistance.
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