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Gold Price Forecast – Gold Markets Break 50 Day EMA

Gold markets have broken through the 50 day EMA during the trading session on Friday, slicing through the $1700 level as well. This was in reaction to the jobs number in America being positive instead of a complete wipeout, which was a huge surprise. At this point, the market is likely to see a lot of covering when it comes to shorts in the stock market, and it is perhaps part of why gold markets are falling. Short-sellers trying to cover the margin calls might make quite a bit of sense. Perhaps it is also due to the fact that people feel much less need for safety at the moment.

Gold Price Predictions Video 08.06.20

Nonetheless, central banks around the world continue to print currency like it is their job, and therefore it makes sense that gold will rise over time. Value hunters most certainly will be coming in somewhere in this general vicinity, and most certainly at the $1600 level if we get down there. I do believe that breaking down below the bottom of this triangle is negative, but I also recognize that there is so much support underneath that it is likely that we turn around and rally again, only to form a rectangle. In other words, we may still be looking at a consolidation pattern even with this drop. Regardless of what pattern or shape we are looking at, the reality is that it is difficult to short gold, as it has been so strong over the last several months.

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

This article was originally posted on FX Empire

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