Gold markets went back and forth during the trading session on Friday but ultimately settled on a green candle, showing that we still have plenty of buyers underneath. Ultimately, I believe that the market goes looking towards the $1750 level, and then the $1760 level. Ultimately, this is a market that will continue to benefit from the central banks around the world doing everything they can to loosen monetary policy.
Gold Price Predictions Video 25.05.20
Break above the $1800 level is probably in the cards eventually, but it is obvious that we are going to have to work rather hard at doing so. Buying on pullbacks continues to work especially near the $1700 level which will be crucial. Breaking down below there, we have the 50 day EMA sliding higher as well, and therefore I think it is ultimately an opportunity to get a bit of value in what is a longer-term uptrend. If we were to break down even further, I would simply look for buying opportunities all the way down to $1600 as there are far too many things working in the favor of gold going forward, with perhaps the lone exception being the fact that the US dollar will continue to stay extraordinarily strong. Having said that, it is possible for both gold and the US dollar to go higher at the same time, so get that correlation out of your head if you think it is possible.
Looking at this chart, I fully anticipate that we are going to break out to the $2000 level over the longer term, and at this point in time it is likely that we will see a lot of choppy behavior, but you should see plenty of buying opportunities going forward.
This article was originally posted on FX Empire
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