Gold Price Forecast – Gold Markets Pull Back

Gold markets initially rally during the trading session on Wednesday but gave back the gains to show signs of weakness. The gold markets have been struggling over the last week or so, as we had broken through a major resistance barrier, but still find plenty of sellers out there. Remember, gold can either be used as a safety play or it can be used as a way to trade against the US dollar. Right now, there seems to be a lot of “risk on” out there, so that has work against the value of gold somewhat. However, the US dollar has been falling so it helps the idea of this market levitating.

Gold Price Predictions Video 16.07.20

I think that there are plenty of support areas underneath, and not the least of which of course will be the $1800 level. Underneath there, the $1750 level should be massive support as well, as it also features the 50 day EMA as well as being a “midcentury mark.” At this point, I think this still remains to be a bit of a “buy on the dips” type of market, as we are still very much in an uptrend despite the fact that the last week has been very messy.

If we can break above the highs of the last couple of days though, then I think we go looking towards the $1850 level, an area that is also a “midcentury mark.” Longer-term I believe that this market goes looking towards the $2000 level but that is going to take some time to happen and obviously some type of bigger catalyst.

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