Gold Price Forecast – Gold Markets Testing 200 Day EMA

Gold markets have fallen hard during the trading session on Tuesday, reaching down towards the $1800 level. That is an area that a lot of traders will be paying close attention to, as it not only features the 200 day EMA but it is where we have seen a previous break out and we are just now retesting that area. I do believe that this is a great place to start buying gold, assuming that the price action dictates it with some type of supportive candlestick. I also believe that we have plenty of time, so I am not simply jumping in just because we have the $1800 level.

Gold Price Predictions Video 25.11.20

What I will be watching is whether or not we get a supportive daily candlestick. If and when we get something along the lines of a hammer or a strong green candlestick, then I will be a buyer. Otherwise, it is very possible we could drop another $50 rather quickly. Pay attention to the US Dollar Index, because if it starts to rise that could be very bad news for gold in general. With that being the case, it is hard to tell where we go next, if the US dollar starts to strengthen again. Quite frankly, the market is not set up for it so it could be a rather brutal drop. Longer-term, I do believe that gold has a bright future but let us be honest here, there are a lot of moving pieces out there that could have people running back to the safety of the US dollar in general.

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