Gold markets have gone back and forth during the trading session on Friday as it looks like we have run out of steam going into the weekend. Quite frankly, this should not be a huge surprise considering that the market had finally pierced the $1800 level during the day. The $1800 level is an area that has attracted a lot of attention in general, so do not be surprised at all to see market participants take a little bit of profit. That being said though, there are a million reasons for gold to go higher, not the least of which of course will be central banks out there looking likely to continue loosening monetary policy. That of course helps the value of gold as fiat currency gets devalued.
Gold Price Predictions Video 13.07.20
Beyond that, there are concerns about the geopolitical risks out there, as the tensions between the United States and China continue to flare up. With that being the case I like the idea of buying dips, and I think that the 50 day EMA which is rapidly approaching the $1750 level is likely to offer a lot of support. A bounce from that area would be preferable, on a pullback that offers value. On the other hand, we could simply break above the highs of the Friday candlestick which would also be a buying opportunity in this type of environment. All things being equal, I think that the market stays in an uptrend and eventually goes looking towards the $2000 level, although it does not necessarily have to do it right away.
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This article was originally posted on FX Empire
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