Gold markets rallied a bit during the trading session on New Year’s Eve, reaching towards the $1525 level, but stalling a bit as Donald Trump has announced that he will be signing a trade deal with the Chinese on January 15. Ultimately, this is a market that I think will continue to see a lot of volatility, but we might be slightly overbought at this point. That being said, a short-term pullback could make quite a bit of sense, but I do think that there is a lot of support at the $1500 level. At that point, there should be buyers coming and based upon not only the large figure, but also the 50 day EMA that would be heading into the region about the same time.
Gold Outlook Video 02.01.20
With all of that being said, we have broken above a major downtrend line recently, so it does suggest that we are changing the trend, or perhaps looked upon the longer-term charts as a continuation of the overall trend. We had recently bounced from the 38.2% Fibonacci retracement level so it makes quite a bit of sense that we could continue to go higher. I think that the Federal Reserve is likely to have to loosen its monetary policy going into 2020 and the rest of the world seems to be catching on to this as gold is getting a bit of a boost. The fact that it is the very end of the year action that I am looking at doesn’t help the situation so sitting on the sidelines for the next couple of days could be the best way to play this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold Markets Testing Major Resistance
- Natural Gas Price Forecast – Natural Gas Markets Break Into Support Area
- Crude Oil Price Update – Price Action Indicates Short-Term Top Forming
- Gold Price Futures (GC) Technical Analysis – Closed Inside Key Retracement Zone at $1512.40 to $1526.40
- S&P 500 Price Forecast – Stock Markets Pullback To Close The Year
- Litecoin, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – 01/01/20