Gold Price Forecast – Gold Markets Sitting On Major Support

The gold market rallied slightly during the trading session on Wednesday as we are sitting on top of the $1800 level. The $1800 level of course is an area that is a large, round, psychologically significant figure but it is also where we see the previous break out. That being said, the market is likely to look at this as potential support. Furthermore, it also features the 200 day EMA, which of course is a longer-term support indicator that a lot of people will pay attention to. This defines the trend for a lot of traders, so value hunters are certainly going to come into the picture right now.

Gold Price Predictions Video 26.11.20

Pay attention to the US Dollar Index, because of the US dollar starts the selloff then it may help gold going forward. Longer-term, I do believe that it is only a matter of time before the liquidity measures taken by central banks around the world will continue to push gold higher, so you should keep that in mind as well. Looking at this candlestick for the trading session on Wednesday, I would not read too much into it, except for the fact that the buyers are in fact showing up where you would expect them to. With Thanksgiving being Thursday, we will get a certain amount of trading in the electronic session but most of the liquidity will be missing.

With that being the case, I like the idea of waiting until the end of the week to see how this market sort itself out, because I do like the idea of gold going higher based upon central bank liquidity measures but that does not mean it has to do it right now.

For a look at all of today’s economic events, check out our economic calendar.