Gold markets rallied a bit during the trading session on Friday to reach towards the $1540 range. There is significant resistance at the $1550 level though, so I think it’s going to take a certain amount of momentum to finally break through there. If we do, then I think the market just simply extends itself towards the $1600 level. Short-term pullbacks will continue to attract a certain amount of money, as we are in an uptrend and it’s obvious that people are willing to step in to pick up any value that presents itself.
Price of Gold Video 26.08.19
The 50 day EMA is down at the $1450 level, as the level is massive support based upon the previous descending triangle. At this point, it’s likely that the massive amount of support at that level should be a major “floor” in the market. Ultimately, I think that we continue to see this market reach to much higher levels, and we are in the early part of a longer-term bullish run. Ultimately, this is a market that will continue to see plenty of reasons to go higher, not the least of which will be central banks easing monetary policy, the trade war continues to go forward, and of course global slowdown of economic conditions.
I have no interest whatsoever in trying to short this market, unless of course we were to somehow break below the 200 day EMA which is closer to the $1350 level. If we were to break down below there it would take a massive change of attitude and significance.
This article was originally posted on FX Empire
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