Gold markets have gone back and forth during the trading session on Monday, testing the $1425 level for interest. This was an area of short-term resistance as of late, and we now look as if we are going to consolidate between the $1425 level and the $1450 level. Given enough time, I do believe that we are willing to break out to the upside, and perhaps reaching towards the $1500 level after that. I like the idea of buying pullbacks anyway, because quite frankly Gold has a huge fundamental reason to continue to go higher.
Gold Prices Video 23.07.19
Central banks around the world cutting interest rates in adding liquidity to the system should continue to drive demand for “hard money” such as gold, and therefore I think that given enough time buyers will continue to flock toward this market. Beyond that, we also have concerns about geopolitical concerns, and that tends to drive gold higher as well. Granted, we have gotten ahead of ourselves over the last several weeks, but the area underneath seems to be a lot of consolidation that’s proven itself to be an area where people may be comfortable buying.
I believe that the $1400 level is essentially the “floor” in the market, as it has been massive support extending down to the $1390 level as of late. I don’t think that changes anytime soon, so therefore I like the idea of buying dips closer to that area as there should be plenty of interest in gold based upon the most recent moves.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/JPY Price Forecast – British pound fails to hang onto gains
- Forex Daily Recap – British Pound under Pressure over Boris Win
- GBP/USD Price Forecast – British pound continues to test major area
- Black Hole In Global Banking Is Being Exposed
- AUD/USD Price Forecast – Australian dollar drift lower
- Gold Price Futures (GC) Technical Analysis – Daily Trend Changes to Down on Trade Through $1401.30