Gold markets pulled back a bit during the trading session on Friday, reaching down towards the $1520 level. At this point, I see a lot of support underneath at the $1500 level, which is an area that was major resistance. At this point, the market looks very likely to find value hunters coming into this market, reaching into dips to take advantage of loose monetary policy around the world. It seems to only be getting worse, and therefore we should continue to see a lot of momentum flying into this market as gold is a hedge against low interest rate environment.
Gold Price Forecast Video 19.08.19
To the downside, the $1450 level should be support as it was the top of the ascending triangle. The previous resistance should now attract a lot of attention, and the fact that the 50 day EMA is reaching towards that area makes a lot of sense as to the idea of buyers stepping back in. To the upside, I think we go to the $1600 level if we can break above the $1550 level. While gold is clearly rallying in US dollar terms, if you have the ability to buy gold and other currencies, you should probably look at that as the US dollar has shown significant amount of strength in general. All things being equal I am a buyer of dips and I have no interest in trying to short gold, and unless central banks change their monetary policy, I think gold will continue to find value hunters on dips.
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This article was originally posted on FX Empire
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