Gold Price Forecast – Gold Markets Continue to See ChoppinessGold went back and forth on Tuesday as $1900 continues to attract attention. We are still paying close attention to the prospect of stimulus from United States.
Gold markets went back and forth during the trading session on Tuesday, as we continue to dance around the 50 day EMA. This is a market that will obviously be paying close attention to the idea of stimulus out the United States and of course whether or not the global economy will get better, or possibly even worse. Gold is longer-term bullish, but it does look to me like we are continuing a slow drift lower.
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Gold markets of course are reacting to various issues, not the least of which would be fear, but we also have to worry about whether or not the US dollar is going to strengthen. It is very well could, especially if we do not get stimulus anytime soon. After all, this is a market that is typically priced in US dollars, but we also have the longer-term aspect of central banks around the world flooding the markets with liquidity. In other words, gold should be bullish against a multitude of currencies, not just the greenback.
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A lot of traders are paying attention to whether or not Congress can get stimulus through anytime soon, and quite frankly it looks very unlikely considering that the election is so close. Once the market finally gives up on the idea, that could send the US dollar much higher and therefore put more downward pressure on gold. I believe that ultimately the gold market is going to find plenty of support underneath at the $1850 level, and most certainly at the $1800 level which is now starting to attract the attention of the 200 day EMA as well.
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