The markets have been very bullish at this point, and the action on Tuesday shows signs of even more coming. The buyers continue to be aggressive, so this is a situation that continues to look at the Federal Reserve for direction, as well as other central banks – with cuts coming from all directions. This would be the normal action for the markets, lower rates driving up the value of the market. The $1450 level above is a target, as it is the most recent high that we have seen.
Gold Technical Analysis Video 24.07.19
The $1400 level underneath is a major support level, and I would be a bit surprised to see this market break below that. Even if we did, the support extends down to the $1390 level. The area is rather important, but not the be-all-end-all of the uptrend. The real target is going to be $1500 above, and that is of course a major figure to pay attention to. The level being broken to the upside would send a fresh flood of money back into the markets, and then drive towards the $2000 level, which is my longer-term thesis.
The markets have been rather one-sided, and that’s a good thing. A trending market is the best thing to be involved in, and for the most part its all about simply waiting for value to appear in the form of lower prices, as the market becomes “cheap” for the time being. The market is one that is simply bought on dips.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Prediction – Prices Drop Ahead of EIA Inventory Report
- Gold Price Forecast – Gold markets recover to show signs of strength again on Wednesday
- GBP/JPY Price Forecast – British pound continues to find resistance at the same place
- Silver Price Forecast – Silver markets rally on Wednesday
- Natural Gas Price Forecast – Natural gas markets fall hard on Wednesday
- U.S. Indices Lower On Earnings, Weak PMI Drags On The EU, Trade Hopes Lift Asia