Gold markets initially gapped higher to kick off the trading session on Thursday but then gave back quite a bit of the gains. This not a huge surprise because we have seen so much in the way of resistance just above so I think it is going to take something rather special to send this market higher. At this point, we have a situation where gold is probably consolidating to build up enough pressure to finally break above the $1450 level. I believe that there is a significant amount of support down to the $1390 level underneath, and then again at the $1350 region as it is the gap on the chart.
Price of Gold Video 19.07.19
The 50 day EMA is starting to rally as well, so I think it’s only a matter time before the buyers come back in. With central banks around the world looking to cut interest rates, it makes sense that precious metals will continue to rally, not only gold but also silver which we have seen act very strong as of late. At this point in time I like buying dips but recognize that there is a lot of noise out there just waiting to happen. Quite frankly, at this point unless central bank suddenly change their attitude, I don’t see gold falling for any significant amount of time. I look at pullbacks as value and will continue to take advantage of them as such. Longer-term, I believe that we are going to not only test $1500, but probably break well above that. With that in mind, I remain bullish but waiting for a good price.
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This article was originally posted on FX Empire
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