Gold Price Forecast – Gold Markets Continue to Show Current Area
Gold markets initially tried to rally during the trading session on Friday but gave back early gains as the US dollar picked up momentum. By doing so, we have formed a less than bullish candlestick but at the end of the day we still have plenty of support underneath. The 50 day EMA sits at the $1900 level, an area that has been crucial more than once and at this point there is no reason to think that anything has changed. Even if we do break down below the $1900 level, it is likely that we go looking towards the $1800 level underneath, which was structural resistance.
Gold Price Predictions Video 07.09.20
I like the idea of buying gold when it gets cheap, as the US dollar is certainly going to continue to struggle but remember that gold is measured in multiple currencies, and even though the Federal Reserve is doing everything it can to destroy the value of the US dollar, the reality is that the markets will find reasons to rally gold based upon multiple central banks, not just the US central bank. Central banks around the world are buying gold so that helps as well.
If they are going to continue to flood the market with fiat currency, then hard assets make quite a bit of sense. If inflation ever picks up, gold markets will skyrocket, and a lot of longer-term traders are betting on that potential reality. I would not hold my breath on that, but ultimately, I do think it is only a matter of time before it happens.
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This article was originally posted on FX Empire
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