Gold Price Forecast – Gold Markets Get Hit

Gold markets initially tried to rally during the trading session on Wednesday but gave back the gains as we have seen a significant amount of negativity. That being said, if we can break down below the $1850 level, then it is likely that we go looking towards the $1800 level underneath. That is a large, round, psychologically significant figure, and therefore people will be paying close attention to it. Furthermore, the 200 day EMA is sitting just below the $1800 level, as it would be the scene where we broke out of previously. Ultimately, the market is looking towards the area as potential value.

Gold Price Predictions Video 12.11.20

Looking at this chart, I think that it is only a matter of time before we see value hunters coming back into this marketplace. However, if we were to break down below the 200 day EMA on a daily close, that could open up even more selling. This will of course come down to what is going on with the US Dollar Index, and therefore it is likely that we would see the inverse correlation going on yet again. Ultimately, the market should give you an opportunity to pick up value, especially as the longer-term outlook for central banks continue to see the need to flood the market with liquidity, and therefore people will look towards hard assets in order to protect themselves.

I do think that it is only a matter of time before we see buyers jumping into this marketplace. All things being equal, I do expect some type of a bounce but obviously you need to see some type of support of candle to get involved.

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