Gold markets went back and forth during the trading session on Thursday again as we are trying to figure out where to go next. Ultimately, this market should go looking towards the $1600 level eventually, and at this point all we really need is some type of headline to cause panic, something that seems to be a theme until recently. Furthermore, the US dollar losing strength could also help gold, and therefore push towards that level.
Gold Technical Analysis Video 24.01.20
If the market was to break above the $1600 level, I believe that we then go looking towards the $1650 level next, and then the $1800 level longer-term. Pullbacks at this point should find plenty supported not only at the $1550 level, but also the 50 day EMA underneath. This is a market that is also forming a bit of a bullish flag, so I do think that we are getting ready to see the next leg higher. It won’t be an easy move but given enough time we should find reasons to continue the longer-term uptrend. All things being equal, I am a buyer of dips and I believe that you can build a larger core position at this point.
If the market were to drop down below the 50 day EMA, I would have to rethink a lot of things but right now it certainly looks as if we have plenty of momentum to continue going higher given enough time. I am bullish of gold and will remain so for the foreseeable future.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Prediction – Prices Rise Following Inline Draw in Inventories
- Silver Price Forecast – Silver Markets Pullback Two Major Moving Average
- GBP/JPY Price Forecast – British Pound Pulls Back Against Japanese Yen
- Natural Gas Price Forecast – Natural Gas Markets Can’t Rally
- Crude Oil Price Forecast – Crude Oil Markets Plummet Again
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Minor Trend Changes to Down Under 3307.25