Gold Price Forecast – Gold Markets Continue to Test Top of Triangle

Gold markets have been all over the place during the trading session on Friday, as the market is trying to break above the top of the triangle that I have marked on the chart. The market needs to digest some of the gains that we have had over the course of the week, and therefore it makes quite a bit of sense that we would see a lot of chop. After all, gold markets will continue to move based upon risk appetite, and there are a lot of questions out there as to where the global economy goes next. With that in mind, I still like the idea of buying dips, because we are in an uptrend and a symmetrical triangle forming gives the impression that the market is simply trying to work through the large gains.

Gold Price Predictions Video 11.05.20

To the downside, the 50 day EMA is tilting higher, and as a result it looks like that would be a significant “floor” in the market, as it continues to move to the upside. I think a lot of traders are simply looking for some type of value in this market to take advantage of, and if we get it, I will not hesitate to jump in and start buying myself.

If we were to break down below the 50 day EMA, then you could have an argument for a move down to the $1600 level, but by the time we get there it is likely that the 200 day EMA will also come into play. That of course is something that attracts a lot of attention as well.