Gold markets initially dipped a bit during the trading session on Friday, but I did find buyers a little later in the day. Ultimately, the 50 day EMA will offer plenty of support from a technical analysis standpoint, so that should be paid attention to as it is just above the psychologically important $1900 level. With that being the case, I do believe that it is only a matter of time before buyers come in on dips, especially if we do end up seeing continued US dollar weakness. Recently, we have seen the dollar strengthened a bit but that could be thought of as a correction at this point.
Gold Price Predictions Video 14.09.20
The $2000 level above will more than likely continue to offer significant psychological resistance, but it also offers a nice target for traders trying to take advantage of overall momentum. I do think that it is only a matter of time before we try to get back up there, and perhaps even break above it. Once we do, then it opens up a move towards the $2100 level, an area that had recently brought in a lot of selling. A break above there obviously will continue to expand the bullish run of this market, allowing the uptrend to continue going much higher, probably based upon a softer US dollar, or possibly even based upon the fact that central banks around the world continue to loosen monetary policy.
With that in mind, I do like the longer-term outlook for gold and silver both, and therefore I have no interest in shorting. Even if we did break down below the $1900 level, I think the $1800 level is even more supportive.
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