Gold markets have initially pulled back a bit during the trading session on Wednesday, only to turn around a break above the $1900 level. That being said, the market looks very likely to pay quite a bit of attention to the 50 day EMA which is flat and driving right through the middle of the recent trading action. With that being the case, the market is likely to continue to see a lot of interest in this area, and of course the US dollar is greatly influential on what happens in the gold market anyway. With the US dollar losing a little bit of a ground on the Wednesday session, that does drive gold up a bit.
Gold Price Predictions Video 15.10.20
To the downside, I think that the $1850 level continues to be an area that will offer a bit of support, but I believe there is even more support close to the $1800 level. That is an area where we had seen a lot of resistance previously, so the breakout above there of course is a bullish sign. I think that is the market will look at that through the prism of “market memory”, meaning that there will be plenty of interest. I think that a pullback towards that area is very possible, perhaps in some type of surge higher when it comes to the US dollar. I would be very aggressive down there.
Having said that, the market is also possibly going to simply rally, and if it does, we should go looking towards the $1960 level where I see a lot of supply, extending all the way to the $2000 level. In other words, I think that we are going to grind sideways more than anything else, but we do have a couple of barriers to pay attention to.
For a look at all of today’s economic events, check out our economic calendar.