Gold Price Forecast – Gold Markets Run Into Resistance

Gold markets have broken above the $1650 level but gave back the gains in order to show signs of exhaustion. At this point, if the market was to break down below the bottom of the candlestick during the trading session on Wednesday, it’s likely that the market then goes down to the $1600 level. That is a large, round, psychologically significant figure that has offered a bit of interest the couple of times though, so I think there will be plenty of buyers in that general vicinity. The 50 day EMA underneath has been grinding higher for ages and has offered quite a bit of dynamic support. I believe that it will more than likely continue to be the way going forward.

Gold Price Predictions Video 05.03.20

On the other hand, of course if the market does break above the top of the range for the trading session on Wednesday, then I think the gold market has the ability to reach towards the $1700 level. That has been significant resistance recently, but I think this pullback is exactly what the market needs in order to build up enough momentum. Breaking above that level allows the market to go looking towards the $1800 level. I have no interest in shorting this market, because quite frankly I think the central banks around the world cutting interest rates and loosening monetary policy will continue to work in favor of precious metals, especially gold as it has a bit of a leg up against silver, as it doesn’t have to worry about the industrial component that the white metal does.