Gold markets have broken above the $2000 level initially during trading on Monday but have pulled back from that psychologically important level. Ultimately, I think we go well beyond $2000, but it may take some time to get used to the idea. Furthermore, the market has been overextended for a while, so I am more than comfortable sitting on the sidelines and waiting for the gold markets to come back. That being said, if we get a daily close above the $2000 level then it is probably a signal that we are ready to continue.
Gold Price Predictions Video 04.08.20
To the downside I like the $1900 level for support, but I can also say the same thing about $1950. After all, that is an area that I think will attract a certain amount of attention due to the fact that there was a little bit of a gap there. Ultimately, gold is something that I have no interest in shorting and therefore it is a matter of being patient enough to take advantage of the opportunities when it becomes just a bit “cheap.” With that being said, the $1900 level is massive support, but even below there I think the absolute “floor” in the market is closer to the $1700 level.
The 200 day EMA sits right there, and of course between here and there we also have the 50 day EMA which is trading at roughly $1800. All things being equal, there is absolutely nothing on this chart that remotely suggests that you have any business trying to short gold. At this point the question is not whether to be longer short, but rather to own it or wait for cheaper pricing?
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This article was originally posted on FX Empire
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