Gold markets rallied a bit during the trading session on Friday but found the noise above the 50 day EMA to be far too resistive to continue going forward. With that being the case, the market is likely to continue to see a bit of a struggle, but at this point I think that the $1900 level also offers a bit of support. In other words, we are simply going back and forth and trying to figure out what to do next. This makes sense as the United States Congress continues to dicker around with the idea of stimulus. This of course could drive up the value of gold given enough time as it will probably put downward pressure on the greenback. Ultimately, this is one of the biggest drivers of gold.
Gold Price Predictions Video 26.10.20
To the downside, the $1850 level underneath is going to be supported, and therefore I think that it will be interesting to see what happens if we do drift down to that level. If we break down below that level, then we are going to go looking towards the $1800 level. The $1800 level also features the scene of a major breakout previously, and the 200 day EMA. Given enough time, we should have plenty of buying opportunities and with that I think we are looking at the possibility of offering value at lower levels which is what I am hoping to do. As far as breaking out to the upside, it is a much more difficult move, reaching towards the $1965 level. Above there, then we have the $2000 level which offers a target.
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This article was originally posted on FX Empire