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Gold Price Forecast – Gold Markets Show Resiliency

By:
Christopher Lewis
Updated: May 27, 2020, 15:39 GMT+00:00

We have turned around to show signs of life again, and therefore I think gold is likely to continue going higher.

Gold

Gold markets rallied a bit during the trading session after initially dropping below the 50 day EMA on Wednesday, showing signs of life again. The $1700 level is a large, round, psychologically significant figure that will attract a certain amount of attention, just as the 50 day EMA would. At this point, the market is likely to continue to see demand for gold, for no other reason than to mitigate potential risks out there when it comes to portfolios. After all, we find ourselves in a very noisy economic scenario, as there are a lot of concerns as to whether or not economies will truly open up, or if it is a scenario where we are just going to get a short-term pop, only to turn right back around.

Gold Price Predictions Video 28.05.20

Beyond that, central banks around the world continue to print money as fast as they can, so that does drive up the “precious metals trade” as a way to protect against financial losses in that environment. The interest rates are still extremely low around the world, but if and when that gives way, this market could shoot straight up in the air. In the meantime, I believe that the 50 day EMA offers enough psychological support that we will probably go looking towards the $1750 level. I believe that there is a resistance barrier that extends to the $1760 level, and once we get above there it is likely that we go looking towards the $1800 level after that. I do think that happens given enough time, and that we then go looking towards the $2000 level.

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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