Gold Price Forecast – Gold markets continue to grind sideways
Gold markets initially fell a bit during the trading session on Wednesday but turned around to find support yet again. Ultimately, this is a market that looks as if it is ready to continue going higher and I do recognize that the $1300 level above is the short-term target. However, I think that we eventually break above there, especially if the Federal Reserve members continue to talk about the need to be “flexible”, so therefore I think that the US dollar will take it on the chin if that happens. Gold markets of course tend to move counter to the strength of the US dollar, and I think eventually that’s exactly what we are going to see.
Gold Analysis Video 17.01.19
The 20 day EMA is just below, and that of course will continue to offer support, just as the top of the uptrend channel will that’s at roughly the same level. I don’t have any interest in shorting Gold, unless of course suddenly we see the Federal Reserve changes its tune, but we have seen a decidedly dovish attitude shift in Washington DC, and I think that will continue to support the Gold markets overall. Beyond that, we have a lot of concerns out there when it comes to geopolitical events, and that in and of itself can cause bullish pressure in Gold markets as traders look for some form of safety. That being said, I do expect a lot of volatility but certainly I believe the buyers will have their way.
This article was originally posted on FX Empire
