Gold Price Forecast – Gold Markets Attempting to Stabilize
Gold markets have rallied a bit during the trading session on Friday, reaching towards the $1890 level rather quickly. At this point, it looks like the $1900 level will be targeted, but we have the 50 day EMA just above there and of course a lot of supply. Quite frankly, this is a market that will probably dip from here, but I also think that will be a nice buying opportunity as central banks around the world will continue to flood the markets with liquidity. This should drive down the value of fiat currency, and thereby drive up the demand for metal such as gold and silver.
Gold Price Predictions Video 02.11.20
Even if we break down below the $1850 level, I think that the $1800 level will be targeted as it was a major breakout previously and we have the 200 day EMA sitting there. Furthermore, we also have stimulus coming from the United States sooner or later, probably early next year. This could be the major fundamental driver for gold to go higher, because quite frankly other central banks around the world will continue to do that as well. With this being said, I do not like the idea of trying to short gold, because I think the longer-term outlook for gold is very bullish, and I would not be surprised at all to see this market resorts $2000 in the relative near term.
When gold falls, I start thinking about how cheap it is, not looking to sell it. Eventually, but the US dollar and gold could both go higher based upon some type of safety trade as well, despite what you may have heard.
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This article was originally posted on FX Empire
