Gold Price Forecast – Gold Markets Continue Consolidation

Gold markets rallied significantly during the trading session on Tuesday, to reach above the $1725 level. Gold of course is getting a bit of a bid as it is in a longer term uptrend but has been consolidating for a couple of months. At this point, it looks as if the $1675 level offer support, while the $1760 level above offers resistance. With all of that being the case, I believe it is only a matter of time before we break out to the upside due to the central bank liquidity issues around the world, and of course the fact that the Federal Reserve is going to continue to be very dovish.

Gold Price Predictions Video 10.06.20

Because of this, I would be a buyer on dips, and I do not have a scenario in which a willing to sell gold quite yet. I think that we eventually go looking towards the $1800 level, and then possibly the $2000 level after that. It is worth noting that the 50 day EMA has been crossed yet again, but the most important thing is that we are in an uptrend anyway, so of course people are looking to pick up gold “on the cheap.”

The US dollar has gotten a little bit of a hit as of late, but there is also the safety trade, so if the US dollar does get a bit of a lift due to fear, that probably could drive money into the gold market simultaneously, after all the two markets do not have to be diametrically opposed and for several years can move in the same direction.

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