Gold Price Forecast – Gold Markets Showing Signs of SupportGold markets fell on Wednesday, but by the time New York got on board the markets turned around completely to show a very supportive looking candlestick.
Gold markets initially pulled back a bit during the trading session on Wednesday, reaching down towards the $1900 level before turning around to form a hammer, which of course is a bullish sign. If we can break above the top of the hammer, then the market is likely to go higher, perhaps reaching towards the $2000 level given enough time. This is a market that is extraordinarily bullish and quite frankly it is difficult to imagine a scenario how that changes anytime soon.
Gold Price Predictions Video 27.08.20
If we break down below the $1900 level, and the 50 day EMA, it should continue to drive down towards the $1800 level where I think there is a massive amount of support. That being said, we are in a longer term uptrend, so it is worth paying attention to. The market back above the $2000 level could send this market much higher, perhaps reaching towards the $2100 level.
I think at this point in time the market is likely to continue to see a lot of volatility, but I still believe in the uptrend due to the fact that Jerome Powell almost certainly do whatever it takes to keep the markets relatively loose. As long as that is the case, the US dollar will continue to lose value, and thereby people will continue to drive into the precious metals markets. Gold of course is the first place people go to, so it does make quite a bit of sense that we continue to find plenty of opportunities going forward.
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