Gold markets initially tried to rally during the trading session on Thursday but then turned around to show signs of exhaustion. Having said that, the market is likely to see buyers underneath just waiting to get involved, as the market has been bullish for some time. At this point I think it is only a matter of time before the value hunters come back in and try to take advantage of “cheap gold.” After all, the Federal Reserve continues to loosen monetary policy and therefore I think gold continues to rise over the longer term. After all, gold loves loose monetary policy as it is a way to protect wealth as a “hard asset.”
Gold Price Predictions Video 10.07.20
Underneath, I think there are plenty of buyers waiting at the $1800 level, and therefore we will continue to see the big figure respected, but even if we did break down below there I think it is only a matter of time before traders would get involved and trying to take advantage of what has clearly been a nice trend, and that cannot be fought. With the stock market getting crushed during the day, it is possible that perhaps we are seeing traders taking profit in gold in order to cover margin calls in other market such as the S&P 500. We have seen this more than once, and quite frankly this is typically very short-lived. This trend is long-term and secular, so I think it is only a matter of time before we get towards the $2000 level.
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