Gold markets have pulled back just a bit during the trading session on Thursday, as we continue to see the $1800 level act as a bit of a magnet for price. The fact that we are hanging about here suggests that perhaps the market is getting extremely comfortable with the idea of $1800 level, and therefore I think it is starting to build a bit of a base. Quite frankly, if it had an issue with being up here it would simply start to sell off again. I do not see that, and therefore I think it is only a matter of time before gold breaks out in a huge way. The US dollar of course is helping, as the Federal Reserve continues the flood the market with absolute dollar liquidity.
Gold Price Predictions Video 17.07.20
With the idea of the central bank flooding the market with US dollars, makes quite a bit of sense that gold would rally. Furthermore, we have a lot of negative headlines out there just waiting to cause issues, so I believe at this point we will eventually go looking towards the $1850 level, and then after that the $2000 level longer-term. Do not get me wrong, I do not think it happens overnight but clearly it is a longer-term target that a lot of traders will be paying attention to.
To the downside, I see a significant amount of support at the bottom of the Tuesday candlestick that was a perfect hammer. If we break down below there, then the 50 day EMA is probably going to be the next target. That is currently sitting at the $1755 level, so that would be the next area that I would anticipate seeing buyers. Overall, I like the idea of taking advantage of value as it occurs, because quite frankly central banks around the world are going to change their tune anytime soon.
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