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Gold markets continue to be very noisy overall, as we have various fears around the world driving precious metals in both directions. Lately though, we have seen a nice grind higher after an explosive move, and with the EMA turning higher, I think longer-term traders are getting involved. With that in mind, I look at the $1225 level as support, and I like the idea of buying dips as they occur.
If we can break above the $1250 level, then it’s likely that we will go looking towards $1275, followed by the $1300 level next. This is a market that has been trying to form a base for some time, and it now looks as if the longer-term money is starting to flow back into the gold market. In fact, I can make a bit of a “rounded bottom” pattern if we get just a little bit higher.
I would expect the 50 EMA to offer support, just as I would expect the $1200 level offer support. I am bullish of gold, simply because nobody really knows how so many things are going to play out. With the type of noise that’s out there, I would start out with a low leverage though, simply because you can have the trade goes against you suddenly. I would build up as it becomes more profitable.
Gold Price Predictions Video 26.10.18
This article was originally posted on FX Empire