Gold Price Forecast – Gold Markets Continue Volatility
Gold markets have gapped lower to kick off the trading session on Thursday, as we continue to see a lot of noise out there, but I think this is a market that will continue to see a lot of volatility going forward. Just underneath, we have the $1900 level, which is a large, round, psychologically significant figure and it is of course a market that attracts a lot of attention right now as the Federal Reserve is out there flooding the market with greenbacks. Ultimately, I think that this market will eventually go much higher and perhaps even reach fresh, new highs relatively soon. Having said that, the last couple of days have been less than impressive.
Gold Price Predictions Video 21.08.20
What I do like about the $1900 level is the fact that it is also backed up by the 50 day EMA, something that of course will attract a certain amount of attention in and of itself. Longer-term, I believe that the market probably goes looking towards the $2100 level, and eventually break above there. However, if we were to break down from here and sliced through the 50 day EMA then my next area of potential buying would be closer to the $1800 level, which is structurally important as well as psychologically so.
I have no interest in shorting gold, not as long as central banks around the world, the Federal Reserve included, continue to flood the markets with fiat currency. Beware though, quite often traders will collect profits in this market to pay for losses in other ones. However, those tend to be buying opportunities given enough time.
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