Gold markets have rallied a bit during the trading session on Friday as we continue to see a lot of concerns around the world. Furthermore, central banks continue to have the printing presses running at full tilt. Ultimately, this suggests that we should continue to see fiat currencies get devalued. The gold market as the natural place to go looking to protect yourself from falling value of currency, so I think we continue to see that factor into the buying to say the least. Furthermore, you have the concerns about the multitude of potential global headlines that could cause issues, and therefore it makes sense that people are using this as a way to protect themselves.
Gold Price Predictions Video 01.06.20
Looking at the chart, I do see a lot of resistance between the $1750 level and the $1760 level. If you can break above there, then the market is likely to go looking towards the $1800 level. Ultimately, the $1800 level is significant resistance, so if we do break above there then the market is free to go much higher over the longer term. That being said, it looks like we are still in the midst of trying to form some type of ascending triangle, and at this point even if we were to pull back from here, it is only going to end up being a buying opportunity. With all of the various concerns around the world when it comes to global trade and of course the pandemic, it is hard to imagine a scenario where gold does not rise over the longer term. The 50 day EMA underneath continues offer plenty of support as we have seen over the last couple of months.
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This article was originally posted on FX Empire
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