Gold Price Forecast – Gold Markets Continue To Find Buyers On DipsThe gold markets pulled back slightly during the trading session on Wednesday, as we continue to see a lot of back and forth when it comes to risk appetite. Gold of course is considered to be a safety haven, but central banks around the world continue to loosen monetary policy as well.
Gold markets initially pulled back during the trading session on Wednesday, to reach towards the $1565 level. At this point, the market has turned around and it looks as if it is trying to rally a bit, perhaps as value hunters return. Central banks around the world continue to loosen monetary policy so that of course does help gold as devaluation of fiat currency is a standard when it comes to the ECB, and perhaps even the Federal Reserve down the road. All things being equal though, the coronavirus has of course had the market go into a bit of a “risk off” attitude of the last couple of weeks and that has also help gold from time to time.
Gold Price Video 13.02.20
The $1600 level above continues to be significant resistance, so if the market could break that level on a daily close, it should kick off the next move higher. All things being equal, I do think this happens, but it is going to take a significant amount of effort to make that move. The 50 day EMA underneath is reaching towards the $1550 level, an area that is significant support. If we were to break down below that level then the gold market will go looking towards the $1500 level underneath, which is a large, round, psychologically significant figure. If we were to break down below there it would be a significant move, especially considering that the 200 day EMA should be in that general vicinity.
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