Gold Price Forecast – Gold Markets Continue to Show Resiliency

Gold markets initially fell during the trading session on Monday to kick off the week on the back foot. However, we have seen a significant bounce to show signs of life again, and therefore it is worth paying attention to the fact that there are plenty of value hunters out there. With this being the case, I have no interest whatsoever in trying to short the gold market and recognize that although there are barriers above, it is probably only a matter of time before we take off again.

Gold Price Predictions Video 08.12.20

One of the biggest reasons why gold may take off is the fact that there is so much uncertainty out there. Further exacerbating the potential move is the fact that the US dollar is most certainly been sold off rather drastically. It has been a rather volatile Monday, and therefore it should not be a huge surprise to see that we have been fact turned around in this market, but I do believe ultimately, we are going to see gold go reaching towards the 50 day EMA above which is currently sitting at the $1873 level. Above there, then the next logical target would be the $1900 handle.

The 200 day EMA is sitting at the $1803 level and has offered significant support. At this point, it is almost as if we are ready to continue the big move higher, which should favor buying on the dips going forward. In fact, I just do not see an argument to start selling gold anytime soon, so therefore I think that you have to look at this with positivity going forward and ignore any signs of weakness other than an opportunity to start buying again.

For a look at all of today’s economic events, check out our economic calendar.