Gold Price Forecast – Gold Markets Rally On Weak US Dollar

Christopher Lewis
Updated: Nov 11, 2020, 09:18 UTC

The gold markets have rallied quite significantly during the trading session on Thursday, as the US dollar has taken a bit of a hit.

Gold Price Forecast – Gold Markets Rally On Weak US Dollar

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Gold markets have rallied significantly during the trading session on Thursday, reaching towards the $1950 level rather early. However, just $10 above the market has seen a lot of supply, so it will be interesting to see if that holds. There is an entire “zone of resistance” extending from the $1960 level to the $2000 level, so signs of exhaustion will be more than likely an opportunity to take profit. You could sell if you wanted to, but that is more of a short-term trading environment, and one that would be dangerous to say the least.

Gold Price Predictions Video 06.11.20

The FOMC Meeting of course will have a significant influence on what goes on with the US dollar, but quite frankly the Federal Reserve has been telegraphing for a while that it does not have too much left that it can do without fiscal stimulus. Senate leader Mitch McConnell has suggested that perhaps stimulus would be the first priority when Congress got back to work, but the reality is that the stimulus will be much smaller than originally anticipated. Because of this, you may actually make more money buying gold and other currencies than the US dollar.

After all, the ECB is likely the flood the markets with liquidity, the Bank of England just increase stimulus, as did the Reserve Bank of Australia. In other words, I do like gold, but I think we may have gotten a little bit ahead of ourselves during the trading session. Pullbacks should continue to be thought of as buying opportunities, and eventually I do anticipate that we break through the $2000 handle.

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.

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