Gold Price Forecast – Gold Markets Stabilize

Gold markets have gapped lower to kick off the Wednesday session, but as you can see, we have gone back and forth since then, and it looks like gold is in fact trying to stabilize a bit. Ultimately, gold is a safe haven commodity, but the US dollar strengthening in the way it has is of course working against the value of gold in the short term. Longer-term, they both will continue to go higher in my estimation, as the coronavirus and a concern about global growth continues to overhang any type of risk appetite.

Gold Price Predictions Video 27.02.20

To the downside, I see the $1600 level has been rather supportive, and I also recognize that the 50 day EMA sitting just below there should continue to offer a lot of support as well. At this point, buying the dips continues to be the best way going forward, and therefore that is exactly how I will trade as it has served me so well. It’s not that we break down below the $1550 level that I would be concerned about gold, and right now that doesn’t look very likely to happen. Having said that, if it does do that than the $1500 level will certainly be tested right along with the 200 day EMA. Longer-term, I think we are trying to build up enough pressure to break above the $1700 level but it’s going to take a lot of effort to make that happen. Buying the dips has worked, and it should continue to do so from everything that I’ve seen over the last several months.