Gold markets continue to be very choppy in general, but the thing that I pay attention to the most right now is the $1550 level. That’s an area that is interesting due to the fact that we gapped higher from there, had formed a hammer in that area, and of course it is a large, round, psychologically significant “midcentury” mark. That tends to attract a certain amount of attention as well, and if we can break down below there it’s likely that the $1525 level would be a target, especially considering that the 50 day EMA is starting to reach towards that area.
Gold Prices Video 23.01.20
At this point, the $1600 level could be a target, but it may take some time to get there. I do like the idea of buying gold in general, but it’s likely that the road higher is going to be a bit choppy to say the least. Short-term pullback should offer buying opportunities that you can build a core position based upon, offering an idea as to value hunting going forward. Ultimately, this is a market that will move higher based upon loosen monetary policy from central banks, or perhaps some type of political event that gets people nervous. Either way, we are most certainly in an uptrend and therefore it’s likely that we will continue to see upward momentum, but it’s going to be something that’s very difficult to fight. If we do break above the $1600 level, then I think longer term we will probably go looking towards the $1800 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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