Gold markets have rallied significantly during the course of the week, touching the $2000 level. That level has caused a significant amount of resistance on short-term charts, as Friday started to see sellers get involved to take profits. I think at this point we are likely to see a pullback from here and eventually value hunting again. However, the market cannot go straight up in the air forever, so we need to be cautious, but I also recognize that looking for some type of pullback is the only way to trade this market. The Federal Reserve of course continues to show signs of flooding the market with greenbacks, and that could continue to push the gold market higher.
Gold Price Predictions Video 03.08.20
Longer-term, I think that gold goes much higher, perhaps as high as $3000 but obviously we need to take a bit of a break here in order to build up the necessary momentum. There will be a lot of “FOMO” out there as quite a few traders have missed this move. Regardless, only the foolhardy would jump in and start selling, because quite frankly this is a market that is extraordinarily bullish, and therefore a simple bit of patience could go long way in order to find value that will be extraordinarily profitable. I believe that volatility is coming, but that should offer plenty of opportunity if you can recognize it. You will probably need to look on the daily chart in order to take advantage of it though. Again, selling is not an option.
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This article was originally posted on FX Empire