Old Forecast 22/09: Gold Stabilizes On Friday

(MENAFN- Daily Forex) Gold is slightly positive during the trading session here on Friday as we are trying to stabilize a bit and perhaps work off some of that excess froth from the shot higher. The market on the weekly candlestick at least is trying to find a shooting star to print. If the market were to break down from here, then we might get a little bit of a pullback. The alternative is to simply go sideways for a while at this point Off the“Froth.”

After all, markets that get a little bit ahead of themselves do tend to work off either via time, in other words, going sideways, or pulling back to offer value that people are willing to take advantage of. The ascending triangle measures for a move to the $3,800 level. And I think you could probably make an argument of getting there. And in fact, it's actually a little bit above 3,800 that it measures to upon closer inspection. At this juncture, if the market starts to sell off, I'm not shorting gold. I'm waiting to buy it on a bounce. If it doesn't and we go sideways and that tells you the market is accepting these higher prices right around $3,700, which makes them less scary, and it will attract people back into the market as well. The US dollar has been strengthening, but gold has held its own and that tells you a lot.

EURUSD Chart by TradingView

So, we'll have to wait and see how that plays out. But right now, we have central banks around the world hoarding gold. We have central banks around the world cutting rates. And of course, we have plenty of geopolitical and trade tensions that could continue to cause some issues and people jumping in and buying gold to protect their wealth from that as well.

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