Gold markets have rallied a bit during the trading session on Friday, showing signs of strength yet again as Jerome Powell has suggested that the bar for interest rate hikes in the United States is even higher than it previously was thought to be. If that is going to be the case, then it makes quite a bit of sense that the gold markets will continue to rally significantly, perhaps with an eye on the $2000 level. Breaking above the $2000 level would be a significant turn of events, as it would recapture a psychologically important level.
Gold Price Predictions Video 31.08.20
Underneath, I see the $1900 level as significant support, and the 50 day EMA being in that same general vicinity should not be overlooked as well. Ultimately, I think that this is a scenario where the market is very likely to continue going higher but may have the occasional pullback that you should look at as value. I do believe that this is a market that will eventually break above that $2000 level and continue going towards the highs again at the $2100 level. With this, I think it is only a matter of time before we not only take out that level but go even higher.
After all, if the US dollar is going to continue to fall and central banks around the world are going to continue to loosen monetary policy, then it makes quite a bit of sense that the gold markets continue to attract a lot of money. Crumbling purchasing power is not something that people tend to take idly, and precious metals are one of the most perfect places to protect yourself.
For a look at all of today’s economic events, check out our economic calendar.