GLD

Gold Price Forecast – Gold Continues to Look For Buyers on Dips

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Gold Markets Technical Analysis

The gold market did very little during the trading session on Monday as we don’t have much in the way of economic data to move the markets. With that being said, the market is basically hanging around the $2,030 level and trying to determine its next big move.

The 50 day EMA underneath continues to offer short-term support, but if we can break down below there, then it opens up the possibility of a move down to the $2,000 level. The $2,000 level is the beginning of a significant support level that extends down to the $1,980 level. Keep in mind that gold is going to be paying attention to a lot of different things at the same time, not the least of which, of course, would be Federal Reserve expectations.

Interest rates in America are expected to go lower over the longer term, so I do think that in the longer term gold goes higher, but in the short term, we may see a little bit of a retracement. This retracement should end up being a buying opportunity from everything I see, and therefore, I am looking for value underneath to turn around and start buying again.

On the upside, if you see this market rally, I think the $2,060 level is the major resistance barrier just above. And then after that, we have the $2075 level. Anything above $2075 then allows for more FOMO trading, perhaps even more buy and hold trading, as it would be a major breach of resistance. Keep in mind that the 200 day EMA currently sits just below the $1,980 level. So, I think that will make the support range underneath it even more viable.

Keep in mind that there are not only interest rate concerns out there, but there are also geopolitical concerns that should keep gold in play and perhaps somewhat bullish longer term. Because of this, I suspect that it will only be a matter of time before we get some type of pullback the value hunters jump in and take advantage of. Furthermore, also keep in mind that central banks are net buyers of gold at the moment.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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