Gold Price Forecast – Gold Markets Continue Lackluster PerformanceGold markets continue to go sideways overall, as we have formed yet another neutral candlestick in the same region that we have been in for several days.
Gold markets have done very little during the trading session again on Tuesday, as we continue to see very little momentum overall. The $1900 level continues to be a bit of a magnet for price, just as the 50 day EMA is. With this being the case, the market looks like it has nowhere to be between now and the election, and quite frankly there is not much of a point to trading this market, because not only do we have the election, but we also have the fact that stimulus is not coming anytime soon. The markets have been waiting for stimulus, and in this scenario where the election is one week away, it is basically impossible for it to happen.
Gold Price Predictions Video 28.10.20
Congress has already left Washington DC, although they can be called back. However, it would take something rather extraordinary to come to some type of conclusion before we know not only if there will be stimulus, but how big it will be. If it is huge, that obviously helps gold but at this point in time it looks very unlikely that we will have stimulus between now and the new year. There is the possibility of some type of “stopgap measure”, but that seems to be very unlikely.
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Because of this, I think that we may have a bit of a pullback in the gold market in the short term, but I do think that it is only a matter of time before the buyers come back to pick up value. After all, the central banks around the world will flood the markets with liquidity and that of course will drive up the need for “hard assets” over the longer term.
For a look at all of today’s economic events, check out our economic calendar.