Gold markets have fallen a bit during the week, breaking below the $1600 level. Underneath there, the market has shown a lot of resiliency and bullish pressure, so we have turned around to form a very bullish hammer shaped candlestick. The hammer of course is a very bullish sign, because the $1700 level above should offer a bit of resistance. I think if we can break above that level, it’s very likely that the market will continue to go much higher, perhaps reaching towards the $1800 level and then by extension as high as the $2000 level over the longer term.
Gold Price Predictions Video 06.04.20
In the meantime, I would expect to see a lot of choppy conditions due to the fact that the market is trying to look at potential further fiscal bailouts and of course the massive monetary loosening policies that we will see at central banks around the world. That being said, I don’t necessarily think that gold is going to break out right away, but I do think that we will get the occasional pullback that offers plenty of buying opportunities. If we were to break down below the bottom of the candlestick, then I believe that the gold market goes looking towards the $1500 level underneath which is at roughly the 50 week EMA.
Either way, we are still very much in an uptrend, so I don’t have any interest in shorting gold from a longer-term play. I think it’s only a matter of time before we go to the upside, so therefore I remain bullish.
This article was originally posted on FX Empire
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