Gold markets pulled back a bit during the trading session on Monday, but then turned around to show signs of life again. By doing so, it looks as if we are trying to form a bit of a base, but not necessarily from a major support level. It is because of this that I suspect that a short-term rally may get sold into again, especially near the 50 day EMA and the $1900 level. This is not to say that I am looking to sell gold, rather that I think you probably will get an opportunity to buy gold at lower levels. I am most certainly interested in the $1800 level if we get down to that area.
Gold Price Predictions Video 29.09.20
The market of course is bullish longer term, so having said that it is worth paying attention to. It also is going to be based upon the safety trade, and of course the US dollar. If the US dollar continues to strengthen that could work against gold, but if it strengthens due to people looking for safety, both of these markets may go up at the same time. Do not get sucked into the idea that the dollar rising means that gold has to fall. All you have to do is look at a chart of the 1980s to see how true that is not. That being said, I like buying dips more than anything else and would do so in very small increments to build a larger and longer-term position.
Read More: Gold Price Forecast – Gold Markets Forming Short-Term Base