Gold Price Forecast – Gold Markets Continue to Build Base for Next LegGold markets have rallied a bit on Thursday as we initially gapped lower and have now filled that gap. It looks likely that we are going to see buyers return.
Gold markets gapped lower during the trading session on Thursday but then turned around to fill that gap. Ultimately, the market looks likely to continue to go higher due to the fact that the $1900 level underneath holding as support. If that is going to be the case, then the hammer that formed during the Wednesday session will be perfect. After all, it did touch a large, round, psychologically significant number and then the 50 day EMA. The fact that we are holding up on Thursday also lends credence to the idea of this market looking good, so ultimately, I am not interested in selling.
Gold Price Predictions Video 14.08.20
Yes, I recognize that there was a complete thrashing on this market during the Tuesday session, but that was essentially something that was overdue. Now that it looks like we are stabilizing, people will start to dip their toe into the water and go long. For myself, I only added to a longer-term core position that am willing to hold for quite some time. All things being equal, I think that the market goes looking towards the highs again as this pullback was roughly 50% of the impulsive leg higher, and of course the 50 day EMA is a certain amount of technical support.
All things being equal, this is a market that is probably moving more of the Federal Reserve dumping dollars into the system more than anything else, something that is not going to end anytime soon. Unfortunately, a lot of people had to get hurt in order for the market is to become much more rational, but then again that is the nature of markets.
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