Gold Price Forecast – Gold Markets Showing ResiliencyGold markets initially fell during the trading session on Wednesday but then turned around to show signs of life again.
Gold markets have fallen a bit during the trading session on Wednesday to kick off the session but has seen buyers jump in and push it back towards the $1900 level. At this point, I think we are going to see a lot of choppiness, and I also recognize that the 50 day EMA sitting just above could offer a bit of resistance. Ultimately, the market looks as if the grind lower could continue, so we probably need a couple of days have clarity before we can really put serious money to work. Do not get me wrong, I have no interest in shorting gold, I just recognized that the market is making “lower lows”, which of course shows a bit of weakness. Furthermore, the US dollar is starting to strengthen a little bit at times, and that can wear upon the value of gold for the time.
Gold Price Predictions Video 01.10.20
The $1800 level underneath is much more interesting to me, and if we can get down in that area, I think a lot of people will be looking to pick up gold “on the cheap”, as it is the scene of a major breakout. Furthermore, the 200 day EMA is approaching that level and a lot of longer-term traders will pay attention to that from an algorithmic standpoint. If we were to break down below the 200 day EMA, that could change things but right now I think this is all about the US dollar and how it behaves. There is an extreme negative correlation between the two markets right now and that something that you should pay attention to.
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