Gold markets did little on Friday as you would expect, due to the fact that it was only a shortened session and serious liquidity would have been missing from the markets as modern markets are based in Chicago. That being the case, we did form a nice-looking hammer on Thursday in both gold and silver, and both of them at crucial levels. It looks to me as if both of these precious metals markets are ready to go higher, so I am a buyer of them on dips. I do not have any interest in shorting either one, or I do believe that gold will probably outperform silver.
Gold Price Predictions Video 06.07.20
As long as central banks around the world continue to ease monetary policy, it is going to continue to put upward pressure on precious metals. Furthermore, gold is considered to be a bit of a safety asset as well and let us face it here: there are a ton of potential negative headlines out there that could cause issues. Breaking above the $1800 level opens up the idea of a move towards the $2000 level, something that I would not be surprised at all to see by the end of the year.
In the meantime, buying dips continues to work and even if we were to break down below the $1750 level, the 50 day EMA sits just below there as well and it should offer a certain amount of technical support also. At this point, this is probably one of the easiest trends despite, although it should be noted that gold is rather choppy so you will need to be patient.
For a look at all of today’s economic events, check out our economic calendar.