Gold Price Forecast – Gold Markets Gapped Lower to Kick off the Day

Gold markets have gapped lower to kick off the trading session on Wednesday, but then turned around to show signs of strength initially. However, we gave back the gains near the $1900 level, and that suggests that we are going to continue to struggle to go higher. The lower part of the consolidation area is closer to the $1850 level. If we can break down below there, then the market goes down to the $1800 level. The $1800 level of course features the 200 day EMA just below it, so that is of course an area that will have at least two reasons for buyers to get involved.

Gold Price Predictions Video 08.10.20

To the upside, if we can break above the 50 day EMA, then the market is likely to go looking towards the $1950 level, an area that has seen a lot of supply. Quite frankly, this is a market that will continue to move in a negative correlation to the US dollar, so therefore pay attention to the US Dollar Index, because it will give you an idea as to where gold goes next. This strengthening US dollar is like kryptonite for gold, and therefore if it continues to rise, I would not be surprised at all to see this market reached down towards the $1800 level.

If we are starting to get into a bigger “risk off” type of environment, gold will eventually turn back around, but not initially. In the beginning, it is all about raising value of the US dollar, something that we are starting to see.

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