Gold Price Forecast – Gold Markets Bounce After Selloff

Gold markets continue to look bullish in general, although we did start out the day on the back foot. By doing so, we started seeing value hunters come back into this marketplace and take advantage of a very strong uptrend. When you look at the charts from the longer-term perspective, you can make an argument for a bit of a “rounded bottom”, which of course is a longer-term bullish signal. The fact that the 50 day EMA is sitting just below and of course the fact that we have the jobs number coming out during the trading session on Friday does bode well for gold in general, as this recent selloff probably has more to do with a significant oversold condition in the US dollar being corrected.

Gold Price Predictions Video 04.09.20

That being said, there are a lot of moving pieces that will come into play on Friday, so keep an eye on what happens with the US dollar as if the only trade in town. We are in an uptrend, despite the fact that we have had a couple of rough weeks. The market had gotten way ahead of itself, so the correction that we have seen is something that you should probably expect. Ultimately, I think this is a market that will find its way higher, slamming into the $2000 level. The 50 day EMA at the $1900 level makes a compelling argument for support, so pay attention to that as well. If we were to break down below there, then I think the next major support level would be found near the $1800 level.

For a look at all of today’s economic events, check out our economic calendar.