Gold markets pulled back a little bit during the trading session on Monday, as we have seen a lot of back-and-forth trading. The $1725 level has offered a little bit of support, but quite frankly I think there is even more support closer to the $1700 level. Any type of bounce air could get people buying this market and trying to aim towards the $1750 level. This is an area that has a lot of resistance built into it towards the $1760 level.
Gold Price Predictions Video 26.05.20
Underneath the $1700 level, there is the 50 day EMA, which of course also offers a significant amount of support. Ultimately, this is a market that I think eventually goes higher but needs to build up a bit of pressure in order to do so. I would not read too much into Monday candlestick due to the fact that it was a shortened session with less liquidity than usual.
If we break down below the 50 day EMA, then it is likely we go looking towards even more support at the $1600 level underneath which would have the 200 day EMA reaching towards it as well. Longer-term, the $1800 level is probably the initial target for longer-term traders, going on to the $2000 level after that which is my longer-term target.
I do believe the goal continues to go higher due to central banks around the world loosening monetary policy and of course a lot of concerns around the world that have people looking to gold for safety.
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This article was originally posted on FX Empire
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