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Gold Price Forecast – Gold Markets Rollover

By:
Christopher Lewis
Published: Sep 2, 2020, 15:13 GMT+00:00

Gold markets get hammered on Wednesday, as the US dollar strengthened. That is like kryptonite for gold, so it should not be a huge surprise

Gold

Gold markets have gotten hit rather hard during the session on Wednesday, as we have broken down towards the $1950 level rather early. Ultimately, this is a market that will continue to move based upon what is going on with the US dollar, as the US dollar strengthening tends to work against the value of precious metals. That being said, I do see a significant amount of support underneath, especially near the $1900 level so I will simply be very patient in look to pick up gold in that general vicinity. However, I recognize that they may not get that big of a pullback so I will have to take this on a day-to-day basis.

Gold Price Predictions Video 03.09.20

At the $1900 level we also have the 50 day EMA and therefore it is likely that people will be paying close attention to area as well. Even if we break down below there, I like the idea of looking towards the $1800 level, which of course is a large figure that previously had been both support and resistance, and a major turning point in the market.

Furthermore, the 200 day seems to be grinding its way towards that level, so if we get down there in a relatively slow manner, that could be an excellent long-term signal to go into this market to the upside. I have no interest in shorting this market, I believe that we are in a longer term cyclical uptrend for reason, mainly the Federal Reserve. With that in mind, I remain bullish but recognize that we may have to wait for a nice opportunity.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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