Gold Price Forecast – Gold Markets Continue to Pressure Downside
Gold markets have broken down towards the bottom of the candlestick from the hammer on Thursday. At this point, if we can break down below the $1850 level it is likely that we continue to go down towards the $1800 level. The $1800 level was an area of importance previously, so I do think that there would be a lot of buyers there. With this, I would be a buyer of the large quantities in that area if we get some type of bounce, because it is the first time, we will have retested the previous resistance.
Gold Price Predictions Video 28.09.20
Looking at this chart, the market is likely to see a lot of volatility, but I do think that longer-term gold is something that will appreciate in value. The 200 day EMA is sitting at the $1754 level and racing towards the $1800 level as well, as the convergence of both a technical and structural support should be an excellent opportunity. Having said that, the market was to break down below the 200 day EMA, then the market could fall apart.
This is all about the US dollar, so make sure you pay attention to it, as the strengthening US dollar could continue to cause major issues with commodities. Quite frankly, the most important indicator that you can use for this market is the US Dollar Index, and trading in the opposite direction, lease for the time being. To the upside, if we were to clear the 50 day EMA which is closer to the $1917 level, gold should take off again.
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This article was originally posted on FX Empire
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