Gold Price Forecast – Gold Markets Rally But Gives Back Early GainsThe gold markets rallied a bit on Thursday but gave back the gains as we may be slightly overstretch. Nonetheless, we have made a significant bounce.
Gold markets have rallied initially during the trading session on Thursday but gave back the gains to form a less than desirable candlestick. Nonetheless, we have seen a massive bounce as of lately, as earlier this week we had recaptured the $1800 level. The 200 day EMA which sits right in the middle of the candlestick from the Tuesday session should be thought of as a longer-term indicator that a lot of people will be paying attention to. Looking at the chart, I think it is only a matter of time before buyers would come back in on a pullback, especially as the Federal Reserve is going to continue to loosen monetary policy for the foreseeable future, so that should put upward pressure on precious metals in general.
Gold Price Predictions Video 04.12.20
Ultimately, I have no interest in shorting gold, at least not at this point so I think that short-term pullbacks probably offer value. At this point, I think that the 50 day EMA above is going to be a target, perhaps even the $1900 level. If we can break above that, then the gold market can continue to go much higher.
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While the market has seen a lot of selling over the last couple of months it has been very orderly, so that does suggest that there is still a lot of buyers underneath as there has not exactly been much of a “panic” in this market. All things being equal, I believe that we continue to go higher, so short-term pullbacks should continue to attract people who are trying to get involved in the market for the longer-term move.
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