Gold markets have gotten hammered during the trading session on Wednesday, as the market in general thinks that “everything is awesome” again. That being said, there is still plenty of support underneath, so this is more or less going to be a timing issue than anything else. I do believe that there are plenty of buyers underneath it will be looking to get involved, so it is more than likely only a matter of time before we see some type of positive action. I would jump on that early and aim towards the $1750 level. In fact, by the time the futures market rolls over into the Asian session, it is very possible that Globex will open up within the triangle.
Gold Price Predictions Video 04.06.20
If it does not, then I believe we go looking towards the $1650 level for support. In general, there are about a million reasons to own gold at the moment, not the least of which is all of the massive money printing that seems to be the only playbook that a lot of central banks out there have. You are going to have to be very patient though, because obviously the markets euphoria is completely out of sorts. With that in mind, it is difficult to imagine a scenario where gold falls from a longer-term standpoint and therefore if you can keep your position size either small or levered less than a futures contract, it is worth a longer-term “buy-and-hold” trade. As far as shorting is concerned, I have no interest in doing so as with gold it is either “buy it or flatten out.”
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This article was originally posted on FX Empire
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