Gold Price Forecast – Gold Continues to See Downward Pressures

Gold Markets Technical Analysis

The gold market fell rather hard during the early hours on Thursday, as we continue to see a lot of basically, panic in the financial world. Ultimately, this is a market that I think does find buyers underneath, and it’s probably worth noting that we are just above the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people will pay close attention to. So ultimately, I think you have to look at this through the prism of a market that may or may not bounce.

We also have an uptrend line that sits just below there. So, I think the downside at this point is probably somewhat limited. In fact, when you look at the chart going back to at least March, you can almost make out a bit of a channel and we are getting fairly close to the bottom of it. So, because of this, I think you’ve got a situation where traders may have dumped gold to quite frankly pay the losses back in other markets.

It’s been a very bad couple of days, but really nothing’s changed. And that’s probably the one thing that traders need to keep in mind. I do think that given enough time, we will probably bounce back towards the $2,400 level and if we can recapture that gold really could start to take off again. On the other hand, if we break down below the uptrend line, then it’s possible that we could drop down to the $2,300 level where there is a massive amount of support. But right now, I think we are more likely to see a bounce. Do not try to anticipate it though. Let the market show you that it’s recovering before putting money to work.

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