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Christopher Lewis

Gold markets look as if they are topping out again near the $1750 level, an area that I think continues to offer a significant amount of resistance. This is based not only upon the fact that we have seen a lot of selling in this area, but the downtrend line that is now forming as the top of a symmetrical triangle. That being said, I have no interest in shorting gold whatsoever and I recognize that there should be buying opportunities at lower levels.

Gold Price Predictions Video 02.06.20

The 50 day EMA is starting to come into focus as it lines up nicely with the uptrend line, and that of course is something that will have to be paid attention to. Because of this I would be more than interested in buying near the $1700 level as it marries all of these major influences at the same time. A bounce from there allows the market to go looking back towards the top of the triangle, which of course is the $1750 level.

When alternate scenario is that we simply continue to go higher and break above the $1760 level, opening up a move towards the $1800 level. That of course is a large, round, psychologically significant figure, and an area that we have pulled back from previously. However, it does make for a nice target as it is essentially the top of the triangle. Either way, the market looks bullish and there are plenty of fundamental reasons to think that gold should continue to strengthen, not the least of which is going to be that the central banks around the world continue to print currency like it is going out of style.

For a look at all of today’s economic events, check out our economic calendar.

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