Gold markets spiked after the Iranians launched over a dozen missiles at US bases in Iraq, but at this point it’s obvious that there has been no real damage done, and we have even seen the leaders of the countries backing off a bit. After the missile attack, Trump tweeted “all is well”, while the Iranians have already suggested that they have made a “slap in the face of America” but did not want to escalate tensions or get involved in a full-scale war. Because of this, it’s very likely that we will see in the easing of tensions.
Gold Price Video 09.01.20
Based upon the shape of the candlestick, it’s very likely that the market will go looking towards the $1550 level, possibly even the $1525 level. Below there, the $1500 level features the 50 day EMA which of course will cause a certain amount of support as well, and it should be said that we are most certainly in a bullish run. However, we are also overdone so looking for value makes quite a bit of sense. Buying up here simply is chasing the trade, which of course is a great way to lose a lot of money. At this point, gold cannot be bought unless it pulls back to more sustainable levels. Look for value and take advantage of it. This doesn’t mean that shorting this market makes much sense, just that buying makes even less. There are plenty of areas underneath that should show signs of support, and at the first sign of a bounce I would be more than willing to take advantage of it.
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This article was originally posted on FX Empire
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