Gold markets have dropped a bit during the trading session on Tuesday as it was a major “risk on” type of trading session. The $1700 level underneath should continue to offer plenty of support, as it is a large, round, psychologically significant figure. The 50 day EMA underneath continues to offer plenty of support, and it is now racing towards the $1700 level. Ultimately, this is a market that I do think find buyers eventually, as we are in an uptrend.
In fact, I believe that the market is going to continue to see noisy trading, but ultimately the market breaking down will simply offer even “cheaper gold.” The $1600 level underneath will be important to pay attention to, as it features the 200 day EMA just below it.
Gold Price Predictions Video 27.05.20
If we rally from the short-term support level, it is likely that we then go due to the $1750 level, possibly even the $1760 level. Glaring that level allows for a longer-term move towards the $1800 level, possibly even the $2000 level after that.
I think the one thing you can count on is a lot of volatility but clearly, we are in an uptrend and unless the entire world changes, it is hard to imagine a scenario where you should be selling gold. I like the idea of buying little bits and pieces on dips, which has worked out quite well over the last year or so. Granted, you should keep in mind that the gold market is very thin at times, so we could get sudden moves, but the can be used for better entries.