Gold Price Forecast – Gold Markets Looking for Support

Christopher Lewis
Published: Oct 29, 2020, 15:30 UTC

Gold markets have fallen initially during the trading session on Thursday but continue to find support underneath.


In this article:

Gold markets initially fell during the trading session on Thursday but then turned around to show signs of life again. By doing so, the market looks as if it is trying to defend the $1850 level, an area that recently had been supported. If we can break down below there, then the market is likely to go looking towards the $1800 level underneath, which of course is a large, round, psychologically significant figure and the scene of a very explosive move to the upside that had seen the gold market break above the $2000 handle.

Gold Price Predictions Video 30.10.20

Because of this, I think that we may get an opportunity to pick up a bit of value in that lower level. With that being said, I like the idea of getting a bit more aggressive it down at the $1800 level, because it is not only a large, round, psychologically significant figure, but it is also where the 200 day EMA is sitting. This tells me that the market is very likely to continue seeing noisy behavior, perhaps more value hunting in that general vicinity. I think at this point the market is likely to attract a lot of inflow, as central banks around the world continue to flood the markets with fiat currency.

That generally will lift the value of gold over the longer term, but we had gotten a bit ahead of ourselves. We had yet to retest the $1800 level, so it does make sense that we need to do so, and that generally will attract a lot of technical traders, especially as the 200 day EMA is sitting down there.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?