Gold markets have rallied quite nicely over the last couple of days after initially plunging, and this is something that should be taken stock of. After all, this is a market that has been in an uptrend for some time, so it does make quite a bit of sense that we would see buyers jump in and pick up gold as it is getting cheaper. Furthermore, we have tested the 50 day EMA which is a technical level that a lot of people will pay attention to, so that of course is worth paying attention to as well. Ultimately, I do think that the uncertainty out there also bodes well for gold longer term, so it does make sense that we go looking towards the $2000 level.
Gold Price Predictions Video 10.09.20
I believe that there is supported not only at the 50 day EMA but also the $1900 level. This is your first “line of defense” for the buyers. If we break down below there, then it is likely that we go down towards the $1800 level where I would expect even more buying pressure. Currently, this almost looks as if it is a bit of a “rounded bottom” from the recent pullback, and of course with all of the uncertainty out there it is not a real stretch think that people may be buying gold to protect their portfolios.
I believe at this point in time, gold will continue to lead the way for risk appetite, and with the recent significant selloff that we have seen, I think that we continue to see a lot of nervous investors jumping into this market.
For a look at all of today’s economic events, check out our economic calendar.
