Gold markets have initially pulled back a bit during the week but showed enough support underneath the turn things around and show signs of strength. The $1600 level above is a target that should continue to be a bit of a target, and perhaps barrier at the same time. If the market can break above the $1600 level on a daily close, then I believe gold will continue to go much higher. At this point, I like buying dips to take advantage of value as it continues to offer value every time it pulls back. The central banks around the world continue to show loose monetary policy, which helps boost precious metals in general.
Gold Price Predictions Video 17.02.20
At this point, the US dollar is strong, so that might be one of the things that has slowed the move to the upside, but clearly it’s very likely to be one that you can’t sell, and I believe that the $1500 level underneath is the absolute “floor” and therefore I don’t believe that the market can break below there without some type of major change. The 50 week EMA is racing to that area and it should show support as well. Unless something changes with the coronavirus and monetary policy around the world, I find it very difficult to imagine that gold will sell off for any significant amount of time. If we do close above the $1600 level, it’s likely that the market will then go looking towards the $1750 level based upon longer-term chart analysis and the fact that we had recently broken out of a bullish flag that measures for that same move.
Please let us know what you think in the comments below