Gold Price Forecast – Gold Markets Continue Grind LowerGold markets have fallen again on Monday as we are clearly below the $1800 level now. With this, we are getting extended but certainly softening.
Gold markets have fallen a bit during the trading session on Monday to kick off the week on the back foot yet again. At this point, we are getting a bit overextended to the downside, but I also believe that there are multiple reasons why gold is starting to sell off. The most obvious reason of course is the idea that the “risk on” trade has people jumping away from the safe haven trade of gold and stepping out on the risk spectrum. Ultimately, I think that we probably have a little further to go before buyers come back in but even if I knew that gold was going to sell off during the trading session, I still would not short it. This is because I think that ultimately the falling US dollar will give gold a boost. Unfortunately, we do not have that signal yet.
Gold Price Predictions Video 01.12.20
On a move back above the 200 day EMA I start to pay more attention to the idea of going long, and most certainly if we could take out the Friday candlestick, I would be much more impressed. Until then, this is a market that I am waiting for signs of support in and perhaps even confirmation via bullish momentum. We clearly do not have that yet, so it is probably best to simply sit on the sidelines and wait. I do believe in the long term bullish scenario for gold, because quite frankly central banks around the world are going to be flooding the markets with liquidity for the foreseeable future, meaning the people will be looking to preserve their wealth.
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