Gold markets initially fell during the trading session on Tuesday, slicing through the 1500 level. That obviously is a large, round, psychologically significant figure and will attract a certain amount of attention. All things being equal, it’s very likely that this market will continue to find a certain amount of attention and bullishness as the 1500 level is about as big and as roundabout figure as you can get. Beyond that, we also have the 50 day EMA just below coming into play as potential support. Because of this, it’s very likely that we continue to see upward pressure given enough time.
Gold Outlook Video 11.09.19
I believe not only the $1500 level offer support, but also the 50 day EMA, and then the top of the previous ascending triangle that I have marked on the chart. Simply put, the world would have to change drastically for gold to suddenly roll over and not be attractive. We have seen enough concern out there as of late to continue to drive gold higher longer term. In fact, it would not surprise me at all to see Gold at $1600 in the next two weeks. Longer-term, I believe that we go to the $2000 an ounce level, but obviously we have a lot of work and panic to do to get there. If we did break down below the $1400 level, then we would come into the purview of the 200 day EMA, where we would have to start asking serious questions about the overall trend. I currently put that at about a 5% chance.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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