Gold markets tried to rally during New Year’s Eve but rolled over to show signs of reluctance to go higher. I think that short-term pullbacks should have plenty of buying opportunities underneath present themselves to at least the $1250 level. Looking at this market, it makes sense that Gold is going to rally as the US dollar is facing a bit of bearish pressure as the Federal Reserve has taken a break from its hawkish stance. I think at this point it’s likely that the Gold markets will continue to try to reach towards the $1300 level, perhaps even the $1400 level over the longer-term.
Gold Price Video 02.01.19
When you look at the longer-term charts, the $1200 level on the bottom is support while the $1400 level on the top. Expect a lot of volatility and expect buyers to come in and pick up value as it appears. I believe the 50 day EMA will offer support, and there are probably a multitude of areas between here and there that could also jump in and push the market higher. I think one of the main reasons we ran out of steam is that it was New Year’s Eve more than anything else. Liquidity will be an issue, but I do expect that Gold will get a bit of a bid early in 2019. If we broke down below the 50 day EMA, that would be rather negative but I don’t think it’s going to happen anytime soon.