Gold markets have fallen a bit during the trading session on Monday to kick off the week but has found enough buying pressure near the $1500 level to continue to attract attention. At this point, the market looks very likely to grind to the upside, and I believe that the $1500 level will be massive support going forward. However, if they were to push this market below there, then I think the next major support level is closer to the $1450 level. Ultimately, I think that gold is a market that cannot be sold, because not only is the $1450 level support based upon the previous top of an ascending triangle, but now we are starting to see the 50 day EMA reach towards that level.
Gold Prices Video 20.08.19
To the upside, I think that the $1550 level will be the initial target, and if we can break above there it’s likely that we could go to the $1600 level next. At this point in time I think that you should look at the gold market from a value perspective, as central banks will continue to do everything they can to drive their currencies lower. This of course is most purely reflected in the precious metals markets, and of course the Gold markets are probably one of the most pure plays when it comes to that. Bitcoin of course has been serving the same function as of late as well, so keep that in mind. In a sense, you can trade one or the other, using the other chart as a secondary indicator.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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