Gold Price Forecast – Gold Markets Form Bearish Engulfing CandlestickGold markets had a rough ride during the trading session on Non-Farm Payroll Friday, as the $2100 level proved to be a bit too much.
Gold markets have formed a massively bearish candlestick during the trading session on Friday as we initially tried to reach towards the $2100 level before pulling back and falling down. Ultimately, this bearish engulfing candlestick is a negative sign and it is likely that we will probably see a bit more selling pressure. Ultimately, this is a market that could go down towards the $2000 level, an area that should be psychologically and structurally important. Furthermore, we could even drop down below that level towards the $1925 level where I see a gap that could be paid attention to as well. Either way, the US dollar strengthening during the trading session of course had a negative effect on gold.
Gold Price Predictions Video 10.08.20
Sooner or later, these type of parabolic moves get corrected, even if it is going to be the major trend. I think looking for value is the best way to go when trading gold and chasing the trade could be a great way to lose a lot of money. With that being the case, I am looking for a dip to at least 2000 to get involved and recognize that if I want to short the US dollar, I can do it with other currencies, and not necessarily take the risk of a parabolic market like gold.
I do think that eventually we go to the $2500 level, but it is going to take some time to get there. The fact that we have covered almost $300 worth of real estate in the last couple of weeks tells me that we are far too overbought.
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