Gold Price Forecast – Gold Markets Continue to Test Support

Gold markets have fallen again during the trading session on Wednesday but did bounce a bit from the crucial $1750 level. This is an area that I think will continue to be very important as it had previously been massive resistance. Because of this, “market memory” comes into play and we see the area offering support. However, breaking down below the $1750 level, then it is very likely that we will see this market fall apart and go looking towards the double bottom underneath at the $1675 region. Breaking below that opens up a massive selloff where we could see the market goes low as $1500.

Gold Price Predictions Video 01.07.21

On the other hand, if we turn around and rally to break above the 200 day EMA, then it is very possible that the market goes looking to fill the gap above, reaching as high as $1860. With that being said, I think at that point you can see some selling pressure, but if we were to break above that area, then we could go into a significant long-term trend to the upside that continues to see this market go back to the all-time highs at the 2100 level, which obviously would take quite some time to get there.

That being said, if the market were to rally like that, we would need to see the US dollar lose strength. That does not look very likely in the short term, so I do favor the downside as things stand currently. That does not necessarily mean that I jump in and start shorting right away, just that it has the more likely of outcomes based upon what I have seen.

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