Gold markets have rallied slightly during the trading session on Wednesday but have given back some of the extensions of gains. That being said, the market is likely to see pullbacks that will be bought into. The 200 day EMA which crossed during the previous session, so it should offer a certain amount of support. Alternately, if we break above the top of the candlestick for the trading session on Wednesday, that could be a buying opportunity as well. Keep in mind that the US dollar continues to see massive amounts of selling, and that could continue to put upward pressure on gold.
Gold Price Predictions Video 03.12.20
Furthermore, there seems to be the massive “reflation trade” out there, and therefore I think it is very likely that we will continue to see commodities go higher. Ultimately, if the US dollar continues to fall from here, it is very likely that commodities in general will get a bit of a boost. The next major resistance level is closer to the $1850 level, and that of course we have the 50 day EMA above there. All things been equal though, this is a market that probably has to spend a certain amount of time building up a bit of a base in order to go long again.
Longer-term, I believe that gold has a bright future, due to the fact that central banks around the world continue to loosen monetary policy and it is not just the Federal Reserve at this point. Underneath, I believe that the recent lows will continue to be supportive, as we have seen such a nice three bar reversal at this point in time.
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