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Gold Price Forecast – Gold Markets Break Crucial Level

By:
Christopher Lewis
Published: Nov 23, 2020, 16:18 UTC

Gold markets broke down below the $1850 level during the trading session on Monday, as we continue to see a lot of noise in general.

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Gold markets have fallen rather hard during the trading session on Monday, breaking through the crucial $1850 level. Now that we are below there, I think there are much more significant areas below that we could go looking towards, most notably the $1800 level. That is an area that features not only the recent break out to go much higher and above the $2000 level, but it also features the 200 day EMA and of course is a large, round, psychologically significant figure. That suggests that there will be a lot of attention paid to that region and therefore I am looking at the daily chart near that level and will be paying close attention to however the markets close.

Gold Price Predictions Video 24.11.20

At this point in time, I do think that eventually we will see gold go higher but obviously we have quite a bit of US dollar strength coming back into the picture, as we have seen more trouble with the European Union and the United Kingdom, which has started a run into the US dollar. That of course weighs upon the value of gold, as it is most typically priced in US dollars and used as a hedge against them. That being the case, I think that we get an opportunity to pick up gold at better prices. I believe that if we simply wait, we will get a nice supportive daily candlestick that marks a turnaround in gold and allows us to write a bigger move to the upside. I have no interest in shorting gold, although I fully anticipate that we drop another $20 from where we are right now.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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