Gold Price Forecast – Gold Markets Pullback Slightly From Major Level

Gold markets have pulled back a bit during the trading session on Wednesday, breaking below the $2000 level as there are plenty of buyers underneath waiting to get involved. The 50 day EMA has recently offered significant support and I think it will be going forward. The question now is whether or not we are going to see gold continue to rally higher. I do think that is the case and I also believe that we are in a longer term uptrend, but the recent action of course will have people a bit nervous. Furthermore, the US dollar is probably oversold in general, so do not be surprised if gold gives it a little bit of a rest.

Gold Price Predictions Video 20.08.20

I believe it is only a matter of time before the buyers come in and pick up the gold market going forward, because quite frankly not only is the Federal Reserve doing this type of liquidity measures, but so are multiple central banks around the world. In other words, it is essentially a “race to the bottom” that we are seeing right now, and as a result it is very likely that you will see buyers on dips going forward regardless. However, if we were to break down below the 50 day EMA, it is likely that the market would become a lot more volatile, perhaps reaching down towards the $1800 level for support there as well. Either way, I do not have any interest in shorting anytime soon, unless of course something changes of rather drastically in the attitude of central bankers around the world.

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