Gold Price Forecast – Gold Markets Pulled Back Slightly After Nice Bounce

Gold markets have gapped a little bit lower to open up the session on Friday, only to turn around and drop from there. Ultimately, this is a market that I think does go higher based upon the structure of the last couple of candlestick, and Friday may have simply been people squaring a position going into the weekend. Ultimately, when you look at the Federal Reserve and what is doing as far as flooding the markets with liquidity, it should continue to drive the value of the gold markets much higher. Recently, we had seen a massive selloff this week, but ultimately that is only a minor blip on the radar, although it was brutal.

Gold Price Predictions Video 17.08.20

Now that we have got rid of the “weak hands” in the market, it makes sense that we can grind away to the upside yet again. We have much more of a chance of a sustainable rally with small and steady gains instead of the parabolic move that we had been seen before. The pullback to the 50 day EMA is worth noting, especially as we ended up forming a hammer for the Wednesday session. I think at this point in time it is likely that this market has bottomed. It is essentially testing the 50% Fibonacci retracement level as it does that, so again I think that we will continue to see buyers. I fully anticipate that this market continues to grind higher in goes looking towards the highs again. Quite frankly, I think we break above there as well.

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