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Gold Price Forecast – Gold Tests the 50 Day EMA

The gold markets have fallen a bit during the trading session on Wednesday to reach down below the 50 day EMA. By doing that, it looks as if the market is trying to find some type of footing. However, there are so many different moving pieces at the moment it’s difficult to get overly confident about anything. In a sense, that’s what makes gold so interesting.
Christopher Lewis

Gold markets have been very volatile during the trading session on Tuesday, dropping below the 50 day EMA before popping back above it again. We currently seem to be paid attention to this technical indicator, and it should be noted that there is a significant amount of noise in this general vicinity. Having said that, if we can break above the top of the range for the trading session on Wednesday, it’s possible that gold rallies towards the $1650 level. I wouldn’t hold my breath for that happening quickly though, because quite frankly it’s quite difficult to imagine a scenario where we simply “melt up” when there is still a significant amount of US dollar demand.

Gold Price Predictions Video 02.04.20

That being said, I do believe in the longer-term uptrend though, so I think it’s only a matter of time before we make a play towards the $1700 level. If you can be cautious and use a small position size, then it’s possible that the volatility can be rode out. The alternate scenario of course is that the market breaks down below the $1550 level, reaching down towards the $1500 level. The market has plenty of support in that area, and therefore I think that the market only bounces given enough time. We have a long way to go, and it’s likely that the choppiness will be the main feature that we see going forward.

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