Gold markets rallied again during the trading session on Monday as traders have come back from the weekend. That being the case, the $1400 level underneath should offer support now that we have gapped above it, and of course it is a large, round, psychologically significant figure. As long as we can stay above there, this market is extraordinarily bullish but quite frankly even if we do break down below there I think there are plenty of support levels underneath that should continue to keep old somewhat levitated.
Gold Prices Video 25.06.19
With the Federal Reserve changing its attitude, it’s very likely that the US dollar will shrink in the face of precious metals, especially considering that the ECB is also very loose with its monetary policy and of course the Bank of Japan has been for decades. Pullbacks should be thought of as buying opportunities, and the $1400 level will be your first support level. However, I think support extends all the way down to at least the $1350 level, maybe even the $1325 level. That being said, it seems very unlikely to happen so therefore I think it’s only a matter of time before value hunters come back in, even if we do get a little bit of a pullback.
Another thing that could be driving Gold markets fire is the extreme amount of geopolitical uncertainty, which of course isn’t going anywhere anytime soon. The market certainly isn’t one that you should be trying to short, or even fade. We have obviously changed attitudes.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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