Gold Price Forecast – Gold Markets Have Wild Ride

Gold markets have been all over the place during the trading session on Wednesday as we initially drop down to the $1850 level, an area that was the scene of a breakout previously. We have bounced quite hard from there to go looking towards the $1900 level but have not broken above it yet. Gold looks as if it is trying to take off to the upside, perhaps based more or less on the fear trade and of course the idea that inflation is about to take off.

Gold Price Predictions Video 20.05.21

With that being the case, this looks a “buy on the dips” type of opportunity just waiting to happen, and I do think that there will be plenty of traders looking to get involved to the upside. In fact, I believe that the “floor in the market” now is somewhere closer to the $1800 level. Gold looks as if it is ready to take off again, but keep in mind that gold has a proclivity to spike suddenly, it would make sense to see that happen but then see the markets focus on something else. After all, gold is a little bit more stable over most of the time, so keep in mind that it tends to move in waves.

The markets have seen a lot of fear, and this means that you should take advantage while you have the chance. Sooner or later, traders will turn to other assets that have some kind of yield if they start to rise. The candlestick looks bullish, so I expect to see some kind of follow through in the short-term. Watch the US dollar, as the negative correlation should continue.

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