Gold markets have rallied a bit during the trading session on Friday, as we continue to see a lot of bullish pressure in gold as people are concerned about the coronavirus and China and of course the possibility of a global slowdown. Beyond that, central banks around the world continue to keep interest rates very loose, so it makes sense that gold should continue to go to the upside. The Federal Reserve, Bank of England, and European Central Bank all had statements recently that suggested loose monetary policy was going to continue to be the way forward, and that of course is very good for gold as it is a “race to the bottom” when it comes to currencies.
The $1550 level underneath should be supportive, as it has been in the last couple of weeks, but we have the 50 day EMA approaching that level as well, and that causes a certain amount of technical support furthermore. Ultimately, if we can break above the $1600 level it’s likely that we will see this market to continue to grind much higher, perhaps looking towards the $1800 level over the longer term. We have recently broken out of a bullish flag, and that is yet another reason to think that the buyers will continue to flood into this market. In fact, I have no set up in which I’m looking to short this market, as we have seen so much in the way of buying pressure. All things being equal, I am bullish of gold and will be buying dips right along the way.
This article was originally posted on FX Empire
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