Gold markets initially fell during the trading session on Thursday in anticipation of the jobs figure in the United States. However, we have seen the market bounce pretty significantly from the $1765 level, which is previous resistance. The fact that we turned around to form a bit of a hammer is a very bullish sign and it suggests that gold will continue to climb higher over the longer term. This should not be a huge surprise; it has been in an uptrend for ages. Beyond that, we have central banks around the world and governments looking to spend even more money, so that should help hard assets such as gold.
Gold Price Predictions Video 03.07.20
At this point, I believe that the market is likely to continue seeing a lot of volatility, but these pullback should continue to be thought of as buying opportunities. Ultimately, gold is trying to build up the necessary momentum to break above the $1800 level, an area that of course has been massive resistance. Once we clear that area, it is likely the gold will continue to go much higher. If and when it does, I suspect that the next target for longer-term traders will be closer to the $2000 region.
It seems as if we are simply dancing around and waiting for some type of decision, but eventually people will either get a not bad news to start buying gold, or the central banks around the world will finally do something to spook people away from fiat currency and back into precious metals. Even if we were to break down a little bit from here, I suspect that the $1750 level will be targeted for support, and most certainly the 50 day EMA will as well.
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This article was originally posted on FX Empire
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