Gold markets pulled back a bit during the trading session on Tuesday, reaching down to lower levels before turning around and showing signs of life later in the day. Ultimately, this is a market that is in an uptrend, and it’s very likely that we will continue to see a lot of noise in this market, and therefore it will be interesting to pay attention to. Because of this, it’s very likely that a turnaround is coming, and if we can break above the $1550 level, then it I believe that the markets will continue to go reaching towards the $1600 level.
Gold Technical Analysis Video 15.01.20
At this point, the market is very likely to continue to focus on a multitude of headlines out there and although it does look like the buyers are ready to get involved, the reality is that it isn’t ready to shoot straight up in the air. You will need to be very cautious, and perhaps patient. I would suggest that building a core position is probably the best way to go going forward. Ultimately, the market then could go looking towards much higher levels and I am bullish of gold longer term. With that in mind, it’s very likely that the market will go higher, and therefore I like the idea of buying each dip with a small position. Adding to the core position I believe that gold probably has much further to go, as even though tensions have calmed down between the Americans and the Iranians, as well as the Americans and the Chinese, the markets don’t seem overly convinced that this point.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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