Gold markets initially fell during the trading session on Wednesday, perhaps in a bid to get out of the market before the Federal Reserve stepped in and had its statement. That being the case, it’s very likely that the market should continue to go higher based upon what we are looking at, but ultimately this is a marketplace that will probably be very noisy, especially as we get the announcement. However, I think that it is only a matter of time before we get some type of resolution.
Gold Price Video 20.06.19
The $1350 level above should be significant resistance, but if we can break above the highs of the last couple of days, extensively the $1365 level, then the market is free to go much higher. That being said, it looks very likely that the market will continue to be very noisy, but I think that pullbacks at this point should be buying opportunities. Ultimately, central banks around the world have been relatively loose, and look to continue that. That should continue to put upward pressure on gold and multiple currencies, not just the US dollar. With that being the case, it’s likely that the markets are going to be a “buy only” scenario, as there seems to be no appetite for tightening monetary policy anywhere. That being said, there is a lot of noise just above the so expect a rocky road but I do think that ultimately the buyers will prevail. To the upside, we are probably looking at the $1400 level.
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This article was originally posted on FX Empire
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