Gold Price Forecast – Gold Markets Continue Explosive Move Higher

Gold markets have rallied during the trading session on Tuesday again, slicing through the $2000 level like it was not even there. That being the case, it looks as if gold will continue to go much higher, as we have had a nice pullback and the uptrend line has held quite nicely. At this point in time, the 61.8% Fibonacci retracement level has offered a lot of support. The 50 day EMA also was sitting right there at the trendline and the fact that we formed a hammer kind of was a bit perfect.

Gold Price Predictions Video 19.08.20

To the downside, the uptrend line should continue to offer plenty of support, and therefore it is likely that there will be plenty of buyers underneath who will try to pick up gold as it gets “cheap.” The Federal Reserve flooding the markets with US dollars will course means that you need to take more of those US dollars in order to buy an ounce of gold. Furthermore, I think that we are still very much in the early stages of the gold rally, and with that being the case I am willing to buy short-term dips as we go long.

I would add slowly though, because the gold markets tend to be very volatile, and can be all over the place on certain headlines. Nonetheless, there is no reason to short this market, as both the fundamental and technical analysis line up for higher pricing given enough time. I believe that gold will eventually go looking towards the 2500 level over the longer term, but obviously we have a lot of bouncing around between now and then.

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