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Gold markets have gapped a bit during the trading session on Wednesday, as it looks like we are trying to stabilize overall. After all, the gold markets are looking at the 200 day EMA for support. Ultimately, the market is likely to go looking towards in $1900 level, an area that is a large, round, psychologically significant figure after all. That should attract a certain amount of attention, but if we can break above there then it is likely we go looking towards the highs at the $1960 level. Breaking above there, opens up the possibility of moving towards the $2000 level.
Gold Price Predictions Video 14.01.21
I believe in buying dips in gold, at least not until we break down below the $1770 level which would be a fresh, new low. That would need to see a certain amount of strength in the US dollar as well, something that I do not see happening in the short term. The overall “reflation trade” continues to be one of the biggest themes around the world right now, and that should favor gold given enough time.
Looking at this chart, I do not see a scenario in selling unless we confirm more of a downtrend, which although we have seen a massive selloff recently, that has not been confirmed yet, so at this point I believe this is a market that you continue to build longer-term positions in, with the expectation of a longer-term move that could be more cyclical in nature than anything else. That being the case, I think that if you are looking for an opportunity for an investment, this could quite frankly be one of your better markets.
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This article was originally posted on FX Empire