Gold Price Forecast – Gold Markets Continue Sideways Dance

Gold markets have rallied just a bit during the trading session on Tuesday, as we continue to see markets kill time as we head into the new year. Ultimately, this is a market that I think does go higher, but you need to keep an eye on the $1900 level as resistance. Underneath, the 50 day EMA offers support as we have seen over the last several days. Ultimately, this is a market that continues to form a “V bottom”, which of course is a bullish sign as well. We had recently reached down towards the $1800 level, bouncing from the 200 day EMA as well. This is typical for a major pull back, and now it looks like we are ready to continue the longer-term uptrend.

Gold Price Predictions Video 30.12.20

With stimulus being signed in the United States, and likely to be expanded, it makes quite a bit of sense that we would continue to see the US dollar lose value in the process. Ultimately, this is a market that will probably break above the $1900 level, reaching towards the $1950 level. After that, then we go looking towards the $2000 level, followed by the $2100 level. Longer-term, I think we go even further than that, so given enough time I do think that gold into being a longer-term “buy-and-hold” type of scenario.

The fact that it is more of an investment than a short-term trade suggests that you have time to get involved, but more importantly it also suggests that you should not jump into the market with a huge position. At this point, you are looking for value on dips and simply riding the wave higher.

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