Gold Price Forecast – Gold Markets Plunge

Gold markets initially tried to rally during the trading session on Thursday but found the $1650 level before too resistive to continue going higher. Gold got crushed due to the fact that the inflationary headwinds aren’t existent at all, despite the fact that central banks around the world are easy and monetary policy. Yes, someday gold will rally due to that but right now it is getting absolutely slaughtered. Part of this could have been due to forced liquidation as well, because obviously there had been some gains in this market that may be used to cover margin in other positions. Sometimes, trade is simply a matter of flow more than anything else.

Gold Price Predictions Video 13.03.20

At this point, the market is likely to continue to see a lot of volatility, but there will be a bottom sooner or later. Currently, it looks as if the $1550 level will be the next target, perhaps even the $1500 level. In 1500 I would expect to see a lot more support though, because it is a large, round, psychologically significant figure and it also features the 200 day EMA. Alternately, the market turned around to retake 1600 we may be trying to form some type of range from which to go back and forth. One thing is for sure, the markets are on edge so the “safety trade” is most certainly something that is in effect at times. That being said, I believe that the big story here is going to be a lack of inflation and “forced liquidation” of gains in order to pay for losses. Volatility will continue to be a major theme.