Gold Price Forecast – Gold Markets Pullback To Start Off The Week
Gold markets rallied a bit during the trading session on Monday to kick off the session, but then broke down significantly. At this point, the market looks very likely to see the $1650 level as a bit of a floor, and I think at this point what we are seeing is forced liquidation by larger funds of their winnings in gold to cover their losses elsewhere. With a new oil war being kicked off by Saudi Arabia and driving prices down in that commodity, it has thrown a complete chaos into the global markets, and while gold is considered to be a safety commodity, the reality is that everything is so correlated these days that if there are massive losses elsewhere, profits have to be trimmed in order to cover the margin calls.
Gold Price Predictions Video 10.03.20
At this point, I do believe that gold is a body, and therefore you can’t be a seller. If you can buy little bits and pieces of it and write out the volatility, eventually we should see a break of the $1700 level, which of course would be the next sign that this market is going higher and therefore could bring in a flood of new money in the market. The US dollar has been sold off drastically, but at this point it seems to be asking quite a bit for the markets to calm down. A little bit of caution in patients could go long way here.