Gold markets were relatively quiet during the trading session on Wednesday as we continue to dance around the $1500 level. We are awaiting the European Central Bank decision on Friday, and although people expect more quantitative easing, the question will then be what is next after that? The more dovish the Europeans are, the more likely Gold is to rally. Beyond that, we also have a lot of issues around the world that could come back in two cause a lot of run to safety as well, and it should also be noted that recently we have had an extreme pullback in what is a very bullish market. With that being the case it’s very unlikely that we continue to go much lower.
Gold Price Video 11.09.19
The 50 day EMA is currently at the $1475 level, so ultimately I believe that should also offer massive support and then of course the top of the previous ascending triangle that is closer to the $1450 level should also offer support as well. In other words, I do like the idea of buying dips, and therefore I think we are looking at a scenario where we are much more likely to go higher than lower, and ultimately I believe what we are looking at is an opportunity to pick up gold “on the cheap.” A break back above the $1505 level could signify a bigger move coming towards the top of the consolidation area above.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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