Gold markets continue to be very volatile, initially pulling back during the trading session on Wednesday but found enough support at the $1400 level to turn things around and rally rather significantly. If this move continues, we will almost certainly make a serious run at the $1450 level, which has been massive resistance in the past. Ultimately, I think that gold probably continues to rise to the point where we break out longer term, as so many central banks around the world are willing to cut interest rates, and of course there are a lot of concerns out there.
Gold Price Video 18.07.19
I think that the $1390 level offers short-term support, so to turn around and break down below that it would be a very negative sign, perhaps reaching down to the $1350 level. Overall though, this is a market that should continue to be boosted by a central bank weakness, and of course the overall trend itself. I think that we will eventually try to go towards the $1500 level, and perhaps even higher than that.
It’s obvious that the trend has changed completely, and the fact that we pulled back a bit only to find buyers and support, that tells me that there is a lot of strength. Given enough time, it’s a market that will continue to find plenty of reasons to get involved with, and therefore I don’t like the idea of trying to get too cute in trying to short it at the top. I think it is only a matter time before that top gives way.
This article was originally posted on FX Empire
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