Advertisement
Advertisement

Gold Price Forecast – Gold Markets Rallied Again

By:
Christopher Lewis
Published: Jul 24, 2020, 16:08 UTC

Gold markets rallied again to head into the weekend, cranking above the $1900 level. But they are getting a bit stretched and I think it is time for a pullback.

Gold

Gold markets have broken above the $1900 level early during the trading session on Friday but have given back just a bit of the gains. At this point I think that the market needs to decide whether or not it is comfortable with the idea of $1900 gold, which I think it will be eventually. However, this entire week has been a straight shot higher, so at the very least I would anticipate a pullback to the $1850 level to find some semblance of value, as the market has gotten a bit ahead of itself. Furthermore, I think the $1800 level now has the likelihood of offering massive support, and essentially a “floor in the market.”

Gold Price Predictions Video 27.07.20

The 50 day EMA is starting to race towards the $1800 level, and I have been saying for some time that I think we are going to the $2000 level. Overall, this is a market that continues to find reasons to go higher, not the least of which of course is the Federal Reserve dumping dollars into the system. As long as that is the case, we are likely to see significant amounts of gold buying, as it is a good way to hedge inflation when the US dollar is pummeled. We have seen the US dollar loose strength across-the-board, so it makes sense that we will continue to see buyers jump into this market every time they can. I believe that the market is going to continue to get plenty of reasons by the Federal Reserve to go long. Shorting is not an option.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement