Gold markets have gone back and forth during the trading session on Friday, as we continue to see a lot of concerns when it comes to global growth and of course the coronavirus. With that being said it’s very likely that the market will continue to struggle on the whole as the markets try to figure out what’s happening next. That being said, gold is in an uptrend and that is something that should not be forgotten. With that, I like the idea of buying dips going forward, as the market has been relatively reliable. To the upside, is very likely that the market will continue to be attracted towards the $1600 level, an area that should continue to attract sellers. That being said, if the market can break above that $1600 level then it’s likely that the market continues to go much higher, kicking off the next move to the upside. At that point, I would anticipate that gold goes looking towards the $1800 level.
To the downside the $1550 level should offer support, and most certainly the $1500 level will. With that, I like the idea of buying dips going forward and I think that building a larger core position is probably the best way to go in this market. Ultimately, the market should continue to see a lot of volatility but in general I do believe in the uptrend for the longer term. The market breaking below the 200 day EMA could be a major breach of confidence, but I don’t see that happening anytime soon.
This article was originally posted on FX Empire
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