Advertisement

Gold Price Forecast – Gold Markets Rally Towards Highs Again

Christopher Lewis
·2-min read

Gold markets rallied significantly during the trading session on Thursday, breaking above the $1700 level. By doing so, the market looks like it is going to try to break out to the upside and it makes quite a bit of sense considering that the Federal Reserve is now buying all kinds of assets including junk bonds. If that’s going to be the case, it will put a certain amount of downward pressure on the US dollar. However, there are those out there that would also equate the Federal Reserve and its massive actions as a sign of serious trouble, perhaps having money flow into gold as a safety trade. Either way, both of these are signs that gold should go higher over the longer term.

Gold Price Predictions Video 10.04.20

On the other end, the market does break down below the 50 day EMA, something that is $129 below where we are currently trading, then the market would change. Until then, I think this is a market that is simply going to be a “buy on the dips” type of situation. We are in an uptrend, and there is no reason to fight that right now, so looking for value is probably the best way going forward. For the long term, I believe that the market will probably go looking towards the $1800 level, possibly even the $2000 level over the next several weeks or months, but I do believe that the trend is set, so at this point I’m not even looking for selling opportunities rather I am looking for value.

This article was originally posted on FX Empire

More From FXEMPIRE: