Gold Price Forecast – Gold Markets Test Support LevelGold markets initially tried to rally during the trading session on Friday after gapping lower but found the $1600 level to be a bit too much. At this point, we then fell towards a significant support region underneath.
Gold markets have initially gapped lower during the trading session on Friday, but then turned around to rally towards the $1600 level. That’s an area that is a large, round, psychologically significant figure, so the fact that we have turned around from there shows that the market will continue to be respectful of the $50 increments. Looking at this market, the gold market will probably reach towards the $1550 level, perhaps even lower than that. That being said, gold is getting crushed because of a couple of different reasons.
Gold Price Predictions Video 16.03.20
The number one reason for gold falling of course is that the large funds out there have to sell profitable positions to cover the margin calls in the stock market. That has weighed upon gold as people need to cover those positions. On the other hand, the idea of inflation is all but a dead thought now, as the central banks cutting rates has the idea of inflation built into it, but we are a long way from that considering that the entire world is basically shutting down. If that’s being the case, the market is not worried about inflation at the moment, although certainly at one point or another they well. I would not be surprised at all to see this market drop again, and if it does then I think the next target will be $1500 which also features the 200 day EMA. If we were to break above the $1600 level though, that could have this market looking towards $1640 above.