Gold Price Forecast – Gold Markets Continue to Look Buoyant

Gold markets have gone back and forth during the trading session on Friday as we continue to wrestle with the idea of the $1900 level. This of course is a large, round, psychologically significant figure, and therefore will attract a certain amount of attention. Break above the $1900 level opens up the possibility of a move towards the $1950 level, which had seen a lot of selling in the past. Ultimately, I think that is exactly what happens, followed by a move towards the $2000 level. This is not to say that it will be easy, just that the market participants have a lot of work ahead.

Gold Price Predictions Video 21.12.20

I do believe that the 50 day EMA underneath will continue to offer support, which is at the base of the candlestick from Thursday. If we break down below there, then I see the 200 day EMA coming into the picture as support as well. Keep in mind that this next week is the Christmas holiday week, so therefore there will be significant concerns when it comes to liquidity. I do believe that given enough time we are looking at a scenario that will see traders trying to push this market higher, especially if stimulus ends up being rather large out of the United States.

Beyond all of that, there is the so-called “safety trade” that could come into play, so that also would be good for gold. The $1900 level looks to be a bit of a “neckline” for some type of inverted head and shoulders pattern as well, so that also suggests that we have much further to go. I have no interest in selling gold anytime soon.

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