Gold markets have rebounded significantly during Thursday’s trading session, reaching the $ 1950 level quite early. However, just $ 10 above the market has seen a great deal, so it will be interesting to see if it holds up. There is a whole “resistance zone” stretching from the $ 1960 level to the $ 2000 level, so signs of exhaustion will be more than likely an opportunity to profit. You could sell if you wanted, but that’s more of a short-term trading environment, and one that would be dangerous to say the least.
Gold Price Predictions Video 06.11.20
The FOMC meeting will, of course, have a significant influence on what happens to the US dollar, but frankly, the Federal Reserve has been telegraphing for a while that it doesn’t have much left to do without fiscal stimulus. Senate Leader Mitch McConnell has suggested that stimulus may be the first priority when Congress gets back to work, but the reality is that the stimulus will be much less than originally planned. Because of this, you can actually make more money buying gold and other currencies than the US dollar.
After all, the ECB is likely to flood the markets with liquidity, the Bank of England just increasing stimulus, as is the Reserve Bank of Australia. In other words, I like gold, but I think we got a little ahead of ourselves during the trading session. The pullbacks should continue to be considered buying opportunities and eventually I anticipate that we are above the $ 2,000 level.
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