Gold Price Forecast – Gold Markets Showing Signs of Major SupportThe gold markets broke down on Wednesday but found the 50 day EMA to be supportive. By doing so, we are forming a hammer which of course is a very bullish sign.
Gold markets have broken down just a little bit during the trading session on Wednesday, reaching towards the 50 day EMA before recovering again. Now that we are above the $1900 level, it looks like we are ready to continue to go higher. Ultimately, this is a market that I think will go looking towards the highs again, but we needed to scare off the “weak hands” in the marketplace. Furthermore, a lot of this may have been due to the US dollar surging higher during the trading session on Tuesday. We have seen that move pull back just a bit, and that has been reflected here as well.
Gold Price Predictions Video 13.08.20
Having said all of this, it will take several days for the market to regain the confidence to take the highs out, and of course the $2000 level will be slightly psychologically important. However, if we were to break down below the 50 day EMA it is likely that we would drop to the $1800 level next. I do like the idea of buying gold and I think that we are in a longer term cyclical bull market, so I will not be a seller.
I even noted this a few days ago that we could see some type of major sell off, but I was not going to be part of it. Simply collecting profits and then buying when gold is “on sale” makes the most sense. This looks like a very vibrant candlestick that suggests that we are ready to continue going higher if you have the wherewithal to hang on to what will more than likely be a choppy move.