Gold Price Forecast – Gold Markets Continue to Consolidate

Gold markets gapped higher during the trading session on Monday to kick off the week, turned around to fall below the 200 day EMA and fill that gap again, only to turn around and rally furthermore. That’s not a huge surprise considering that there is so much in the way of risk aversion out there, but the Federal Reserve also got into the game, talking about quantitative easing again and offering to buy corporate bonds. Because of this, it should work against the value of the US dollar longer term but there is still a major US dollar shortage around the world so while I do think that gold could rally, I think the rally is somewhat limited.

Gold Price Predictions Video 24.03.20

Because of this, expect a lot of volatility in short-term trading. However, if the market does close above the $1550 level on a daily close, then it opens up a bigger move. Longer-term, I do believe in the efficacy of the bull market, and it is worth noting that we have just broken above the top of an inverted hammer, which in and of itself is a bullish sign but I see so much in the way of resistance at $1550 that it is going to be a bit difficult. Ultimately, if the market can break above there one would have to think that the next target would be closer to the $1700 level which was the most recent high. The extreme demand for US dollars right now does work against the momentum of any breakout though.