Gold Price Forecast – Gold Markets Rallied Slightly As Support Continues

Gold markets have rallied a bit during the trading session on Thursday to show the $1550 level as offering support yet again. That being the case, we are heading into the jobs figure and of course that will have an influence on the US dollar and therefore the gold markets. The $1600 level above is obvious resistance, so it’s possible that the market tries to reach that area again, but I think it’s going to take a significant amount of momentum to finally break through there. Pullbacks at this point continue to see support at the 50 day EMA as well, so I think that any downside move is probably somewhat limited, despite the fact that the US dollar has rallied to.

Gold Technical Analysis Video 07.02.20

This brings up the point that the strengthening dollar is not working against the value of gold, which is a sign that there is a lot of demand for the commodity in general. Ultimately, this is a market that should continue to find buyers underneath based upon the fact that not only do we have low interest rates in central banks around the world, but we also have a whole host of potential geopolitical issues out there just waiting to cause chaos yet again. Furthermore, there are concerns about global growth when it comes to the coronavirus and China, so that’s another catalyst to think that gold may take off to the upside eventually. All things being equal, I do like buying gold on dips and building up a larger core position.

Please let us know what you think in the comments below