Gold markets initially fell during the week after gapping higher due to the Saudi drone attacks, filling the gap and then turned around to end up forming a relatively supportive looking candle stick. However, there are long wicks to the upside that would have to be chewed through, so I think it’s likely that we will see the market try to fight and form a consolidation area. That being said, even if we were to break down through the bottom of the week, the market will more than likely find significant support at the $1450 level which was the previous top of the ascending wedge that is on the chart.
Price of Gold Video 23.09.19
All things being equal I do believe that the Gold markets will find a reason to go higher and push towards the highs again. If we can break the highs then it’s time to hang on for a bigger move towards the $1600 level, $1800 level, and that of course the $2000 level. This is a market that is moving due to the global growth story shrinking and of course central banks around the world cutting rates and doing more quantitative easing. The geopolitical situation of course is very negative as well, so all things being equal it makes sense that the gold market should continue to go to the upside. All things being equal it seems very difficult for gold to break down significantly due to the fact that there are so many perfect variables lining up at the same time.
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This article was originally posted on FX Empire
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