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Christopher Lewis

The gold markets have pulled back slightly during the trading session on Tuesday initially before bouncing significantly to show signs of life again, as we continue to see a lot of noise. Ultimately, this is a market that has a lot of support underneath extending all the way down to the $1700 level. With this, the market should continue to see a lot of buying pressure underneath, and therefore I think that value hunters will continue to look for value. The 50 day EMA sits just below the $1700 level as well, so it does in fact make sense that buyers would be coming in at this point.

Gold Price Predictions Video 20.05.20

If we were to break down below the 50 day EMA then it is likely that the market could fall significantly from there, but we would have to have a huge “risk on” type of move that was somewhat sustainable. Furthermore, central banks around the world would have to quit printing money, and I just do not see that happening anytime soon. With this, it is highly likely that buyers will continue to buy these pullbacks as they offer opportunities to add to a longer-term core position. The candlestick is relatively supportive in the sense that we have broken down a little bit but then bounced enough to show resiliency. I believe in adding slowly, and therefore aiming towards the $1800 level. Above there, the market is highly likely to continue its uptrend and go looking towards the $2000 level on a longer-term standpoint. This does not mean that it is going to be a shot straight up, and very rarely is, but it is clearly a very bullish market overall.

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