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Gold Price Forecast – Gold Markets Rally Again

Christopher Lewis

Gold markets have pulled back a bit during the trading session on Friday, reaching down to words the $1550 level before rallying again. By bouncing the way, we have, it’s likely that the plenty of reasons out there to push this market to the upside. The $1600 level is a large, round, psychologically significant figure and an area where we have seen sellers come back in. In fact, you can also make an argument for the fact that we had formed a bit of a bullish flag, and therefore it’s something worth paying attention to.

Gold Outlook Video 27.01.20

Christine Largarde suggested that the European Central Bank continues to keep monetary policy loose, and that of course drives up the demand for gold as well. Beyond that, the Federal Reserve continues to increase its balance sheet, thereby doing “not QE4”, which is the way they describe the latest round of quantitative easing. All things being equal though, it’s very likely that we continue to go higher, but it isn’t always going to be an explosive move. It’s more or less a grind to the upside, and based upon the bullish flag, it’s likely that the market could go as high as the $1650 level. Furthermore, I believe that based upon longer-term chart we could go as high as $1800 level, but it may take quite some time to get there. Overall, there is the possibility of some type of geopolitical shock, or perhaps even financial one. At this point, dips continues offer plenty of opportunities, and the $1550 level underneath should be the first major support level, followed by the 50 day EMA which is closer to the $1520 level.

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This article was originally posted on FX Empire

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