Gold markets initially rally during the week but then gave back the gains to drive back down towards the $1710 level. More importantly, it is setting the top of the triangle that it just broke out of, which is quite common for technical patterns to do once they have been busted through. The $1700 level should offer a significant amount of support as well, so I think it is only a matter of time before the buyers come back in.
Beyond all of that, gold is in an uptrend for a reason. Central banks around the world continue to kill their own currencies through quantitative easing and flat out money printing. The Federal Reserve is buying high-yield debt, otherwise known as “junk debt”, which tells you how bad things really are. Yes, it is a fact that a lot of pundits say that since we are going to reopen the economy that everything is fine, but the reality is that things are not. If they were, the Federal Reserve would not be jumping all over this.
Gold Price Predictions Video 25.05.20
The $1800 level above would be a target, and if we can break above there it is likely that the market could go to the $2000 level. I like the idea of buying value when it appears, and quite frankly I think that a lot of larger traders are doing the same thing based upon what we have seen over the last several months. Yes, the US dollar is rallying, and a lot of people will tell you that it works against the value of gold. That being said, all one has to do is look at historical charts to find plenty of examples when both went higher.