FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
59,514,826Confirmed
1,402,028Deaths
41,156,663Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Gold

Gold markets initially tried to rally during the course of the week, reaching towards the $1940 level before pulling back to form a shooting star. The shooting star of course is a negative candlestick, and it suggests that we could drift lower. With that being the case, I think that we could break down towards the $1850 level longer-term. Underneath there, then we are going to go looking towards $1800 level which of course is a large, round, psychologically significant figure that will have a major influence on where we go next. That is an area we broke out of previously, and by the time we get down there it is likely that we will see the 50 week EMA come into play.

Gold Price Predictions Video 26.10.20

Looking at this chart, if we break above the top of the weekly candlestick that would be a very bullish sign but quite frankly, I will prefer to find more value underneath in order to play a longer-term position. At this point, I have no interest whatsoever in trying to get short as although the US dollar may strengthen, central banks around the world will continue to flood the markets with liquidity, and that could drive gold higher at the same time as the greenback.

All things being equal, there could be a bit of a “safety trade” formed again as well, so there are multiple reasons to think that perhaps gold could continue to go higher over the longer term. At this point, your job is to simply look for value underneath to take advantage of. I think we still have a couple of quiet weeks heading into the election.

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

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US