Gold Weekly Price Forecast – Gold Markets Stabilizing

Gold markets have gone back and forth during the course of the week, showing signs of indecision as we see support underneath at the 50 week EMA, which is also backed up by the $1800 level. That being said, the market is likely to see a bit of base building in this area, and I think that given enough time we will probably go looking towards the $2100 level over the longer term. To the downside, I see the 50 week EMA as support from a longer-term perspective as well, as you can see clearly on the chart.

Gold Price Predictions Video 01.02.21

Gold is going to continue to get a boost from a shrinking US dollar and perhaps more importantly the fact that we will continue to see central banks around the world throw liquidity around, thereby devaluing currencies. I think that given enough time we will probably see not only the $2100 level had above, but probably a break above there to make fresh highs. I also anticipate that gold will rally against other currencies, not just the greenback.

To the downside, if we were to break down below the $1750 level, I would be a bit surprised, but it could open up the door to the $1700 level where I see even more support. Gold is not a market that I have any interest in shorting, and even though it can be noisy, when we look at the longer-term perspective like this, you can see clearly that the trend has been going higher for some time, although it has been very quiet over the last couple of months after that initial surge.

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