Gold Price Forecast – Gold Markets Continue to Dance Around Big Figure

Gold markets have pulled back during the trading session initially on Thursday, as the $1900 level continues to cause a certain amount of support and attention. Ultimately, the market looks as if it is trying to also dance around the 50 day EMA and try to form some type of bottoming pattern. From a short-term perspective, we are in a bullish channel, so that of course also is something worth paying attention to.

Gold Price Predictions Video 16.10.20

Even if we do break down from here, I think there is plenty of support near the $1850 level, and then of course down at the $1800 level which has been important more than once. Ultimately, I think that the $1800 level could offer a bit of a “floor” in the market, and I think that a lot of people would very likely be interested in picking up gold “on the cheap” in that general vicinity. Furthermore, the central banks around the world continue to flood the markets with liquidity and look very likely to continue doing so, so I think ultimately gold does get a bit of a boost.

The gold market should continue to see a lot of upward pressure given enough time, but I also recognize that we need to see bits and pieces of support and bounces in order to get involved. I would build a position slowly, because I believe that this is a longer-term secular trend, not necessarily a shot straight up in the air. If we break down below the $1800 level, then we have to reassess the entire situation. However, gold should continue to show strength in various currencies, not just the US dollar.

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