Gold Price Forecast – Gold Markets Stabilize In Wednesday Trading

Gold markets fell slightly during the trading session on Wednesday before bouncing from the $1550 level again. This is an area that of course is massive support due to the fact that we have bounced from here before, in the 50 day EMA is starting to race towards that level. Furthermore, these “midcentury” marks tend to be areas that attract a lot of attention in this market. The $1600 level above is the short term target but it should be noted that the recent selloff has been rather stringent, so it makes sense that it may be more of a grind higher than anything else.

Gold Prices Video 06.02.20

To the downside, I believe that the 50 day EMA will offer significant support, so it’s not until we break down below there that it be concerned, and at that point I would be more than likely to simply sit on the sidelines and wait until we test the $1500 level which is also massive support.

To the upside, if the market was ready to break above the $1600 level you would have to assume that is a significant sign that we are going to continue going higher, perhaps reaching towards the $1650 level, and that of course the $1800 level. We are in an uptrend, despite the fact that we have had a significant selloff over the last couple of days, so one should still favor the upside as central banks around the world continue to keep monetary policy very loose.

Please let us know what you think in the comments below