Gold Price Forecast – Gold Markets Sell Off Slightly

Gold markets initially tried to rally during the trading session on Wednesday but gave back the gains as we reached towards the $1650 level. At this point, the market is likely to continue to see that level as an important region, and as a result I do like the idea of trying to play this market as a “reversion to the mean.” In other words, if we break down below the $1650 level, then I would be looking at this as a possible buying opportunity closer to the $1600 level. On the other hand, if we break above and resort $1700, it’s likely that we will see some selling pressure. I think at this point the gold market continues to struggle with what to do next as risk appetite seems to be all over the place. There has been a lot of selling of gold that was forced, because there were gains in that market. Quite often, larger funds sell gains in one market to pay for another.

Gold Price Predictions Video 12.03.20

At this point, the market looks to be a bit confused, and I think at this point we will probably continue to go back and forth in a relatively well-defined $100 range. Because of this, the $1650 level is essentially “fair value”, keeping the market in check as it is offering a bit of a fulcrum for price. Because of this, I believe that you have to trade this market from a short-term standpoint and keep an eye on the larger levels. Gold could get a bit of a “risk off” rally going, but at the same time there’s absolutely no signs of inflation, so that part of the gold equation is not working in its favor.