Gold Price Forecast – Gold markets rallied slightly on TuesdayGold markets rallied slightly during the day on Tuesday as the $1500 level has attracted a certain amount of buying pressure. However, we may need to pullback in order to pick up enough momentum to go forward.
Gold markets rallied slightly during the trading session on Tuesday after gapping higher, but quite frankly I think the biggest thing to pay attention to here is the $1500 level. It looks as if it is attracting money but it would not surprise me at all to see this market drift back towards the 50 day EMA which is currently trading just underneath the $1450 level. At this point, I like the idea of buying gold every time it dips, because quite frankly it’s likely that value hunters will come back in due to central bank monetary policy getting looser by the day.
Gold Technical Analysis Video 21.08.19
I believe that longer-term we are going to go towards the $1600 level, and then possibly the $1700 level. I believe at this point the absolute “floor” in the market is closer to the $1400 level underneath. Ultimately, I think that the market participants continue to look at gold as a store of value against central bank quantitative easing which seems to be ramping up yet again. With fiat currencies around the world falling, it makes sense that Gold will rally, not only in US dollars but also other currencies as well. I have no interest in shorting this market anytime soon, it looks far too strong but we are just a bit overbought so I’m actually hoping for some type of pullback to take advantage of. Being patient will probably be the biggest thing that will create positive returns in this market. Buying the dips and building up a larger core position continues to be the way to play this market.
Please let us know what you think in the comments below