Gold markets rallied a bit during the day on Friday to show signs of life again, as the market continues to look at the $1550 level as an area of potential support. Furthermore, the $1525 level looks to be supportive as does the 50 day EMA which is racing towards that area. Keep in mind that central banks around the world continue to be very loose with monetary policy, while some of the more prominent minor central banks have been buying gold hand over fist.
Price of Gold Video 20.01.20
This doesn’t mean that we go straight up in the air, and I do think that it is probably only a matter of time before we grind our way to the upside, but it is going to take a lot of momentum. With that in mind, I am bullish of gold, but I recognize that this is a slow-moving market most of the time. For that matter, the Forex markets have almost sat still over the last several weeks, so it’s a bit much to expect gold markets to outperform without some type of major issue out there. To the downside, if we were to break below the $1500 level, I would have to rethink the entire situation, but I don’t see that happening anytime soon.
Pay attention to the US dollar, because if it does lose a bit of its luster, that could also help gold as well, as it is of course priced in that currency. Quite frankly, I like gold well enough that I’m willing to buy gold in multiple currencies given half a chance.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Weekly Price Forecast – Stock Markets Continue To Power Higher
- S&P 500 Price Forecast – S&P markets grind higher
- EUR/USD Weekly Price Forecast – Euro Gives Up Gains
- Crude Oil Weekly Price Forecast – Crude Oil Forms A Hammer
- US Stock Market Overview Stocks Hit Fresh High Buoyed by Housing Starts
- GOLD Weekly Price Forecast – Gold Pulls Back But Find Buyers