Gold markets have continued to look very bullish over the last several weeks, and at this point it looks as if the market is trying to get towards the $1600 level. The $1600 level above continues to offer plenty of resistance as it has been the highs lately, but at this point it looks as if the market is still looking to go higher, and if the weekly candlestick and close above the $1600 level, then it’s likely to go much higher. Short-term pullbacks at this point should continue to find plenty of support at the $1550 level, not only because we have seen a significant amount of buying pressure there, but also because the 50 day EMA is getting ready to reach towards that area.
Gold Price Predictions Video 18.02.20
All things being equal, we are taking a look at this market through the prism of an ascending triangle, and therefore it’s yet another reason the technical analysts will look at gold through bullish prism. That being said though, you should keep in mind that the $1600 level has been an area of trouble more than once, from both a support and resistance standpoint. I do believe that we will probably see a bit of a pullback, but given enough time traders will probably continue to look for value in this market, and at this point it’s difficult to imagine a scenario where you should be selling gold as central banks around the world continue to loosen monetary policy, and of course there are still a lot of concerns when it comes to the coronavirus and global slowdown issues, so there are plenty of reasons why gold should go higher.
This article was originally posted on FX Empire
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