Gold markets rallied a bit during the trading session on Wednesday, reaching towards the downtrend line that makes up the triangle that I have marked on the chart. Having said that, even if we break above here, I will not read too much into it until we get above the $2000 level. Yes, I like gold longer term but the reality is that the US dollar is starting to put up a bit of a fight against many assets around the world, if that is going to be the case it is hard to imagine the gold will not get a bit of a pullback as well.
Gold Price Predictions Video 17.09.20
Any pullback at this point in time would have to see a breaking of the 50 day EMA at the very least, if not the $1900 level. If we can break down below the $1900 level, then it is likely that the market goes looking towards the $1800 level which I think is even more bullish. All things being equal, I think that the Jerome Powell press conference after the Federal Reserve meeting will be crucial as to where we go next, and perhaps even more important would be the reaction of the market to potential US monetary policy.
If we can get a daily close above the $2000 level, then the market should be ready to go much higher. Otherwise, I would have to assume that we continue to chop between current levels and the 50 day EMA, which has been the case for several weeks. Ultimately, this is a market that is in an uptrend, so I do not necessarily like shorting it yet.
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