GLD

Gold Price Forecast – Gold Markets Looked to Be Finding Some Type of Floor

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Gold Price Predictions Video for 19-01-2024

Gold Markets Technical Analysis

Gold rallied a bit during the early hours on Thursday as it looks like the $2,000 level is going to hold as it is a large round figure that will attract a lot of attention. That being said, we are also testing the 50 day EMA early in the day and if we can break above there, it’s likely that we could go looking to the $2050 level. As long as we stay above the 2000$ level, I think that short-term pullbacks come into the picture as buying opportunities. Pay close attention to thegold marketand its relation to the bond market as well, more specifically, yields. If yields look like they are going to drop, then generally gold does well.

We also have a lot of geopolitical noise out there that could cause some issues, as there’s been yet another round of attacks in the Red Sea and it looks like tensions in the Middle East are starting to flare up even wider than originally thought. With this, I think you have to assume that gold will continue to be a part of most traders’ portfolios.

If we were to break down below the $2,000 level, the next area I’m watching is the $1,980 level. Giving that up to the downside would be very bad for gold, and at that point in time, I think we really start to roll over. That being said, the early hours on Thursday certainly suggest that we are more likely than not to continue going higher overall, and therefore I don’t really have an interest in shorting gold anytime soon.

Pay attention to the US dollar, it also has a negative correlation, but there are times when both can go higher simultaneously, so keep that in mind as well. That’s especially true when there’s more of a safety bid. We will have to wait to see whether or not that plays out, but at this point it looks like gold is in an area where a lot of people would think that it is relatively “cheap”, so keep that in the back of your mind.

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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