Gold markets went back and forth during the trading session on Monday, as markets continue to be very cautious about geopolitical situations and of course the global growth situation as well. Beyond that we have several central banks around the world looking to cut rates and do more quantitative easing, so that of course is also a reason why Gold should continue to do fairly well. At this point in time I think it’s only a matter of time before the markets break out to the upside and I also recognize that the $1500 level looks to be massive support.
Gold Price Video 03.09.19
Even if we were to break down below there, the $1450 level should offer plenty of support, and therefore I think that would considered to be the “floor”, or at least the bottom of that zone extending down from the $1500 level. I’m looking for an opportunity to pick up gold “on the cheap”, as precious metals have been on an absolute tear lately. Silver is probably a bit more overdone than gold, but if silver can pull back nicely and find support, that could have people running in the gold as the two tend to trade in somewhat harmonious patterns.
I believe that this market will be going towards the $1600 level, and then towards the $1800 level. The market has plenty of reasons to go higher, not the least of which is the US/China trade situation, which seems to be getting worse. We have the Brexit, we have Germany and recession, and then all of the quantitative easing. Plenty of reasons to think gold continues to attract attention.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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