Gold markets have pulled back just a bit during the trading session on Friday, to show signs of weakness but then turned around to reach towards the $1517 level again. The $1520 level above is major resistance, so if we can break above there then the market should continue to go much higher. We are a little bit overextended in the short term though, so I would look for pullbacks in order to start buying again, especially if we can find some type of bounce near the $1500 level. The 50 day EMA is starting to turn higher, and that should offer a bit of a supportive action as well.
Gold Prices Video 30.12.19
At this point, if we do break out above the $1520 level it’s likely that we go back towards the highs again closer to the $1550 level. If we can get above there, then the market goes looking towards the $1600 level. All things being equal, look for value and gold as it is most certainly bullish at this point, now that we have broken above the downtrend channel that we have seen for several months. Longer-term, the market has bounced from the 38.2% Fibonacci retracement level, showing a strong trend for the longer-term uptrend, and it’s likely that we will continue to see value hunters come back into this marketplace. I think at this point gold looks very good for the year, especially considering that the central banks around the world continue to loosen monetary policy.
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This article was originally posted on FX Empire
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