Gold Price Forecast – Gold Markets Continue To Grind Higher

Gold markets rallied a bit during the trading session on Monday as traders came back to work. Ultimately, this is a market that continues to find buyers on short-term dips and we also have a significant uptrend line that comes into play as well. Ultimately, I think that buyers will buy dips as gold has more of a safety play attached to it, and there are plenty of things out there to be worried about right now.

Gold Analysis Video 11.02.20

To the upside, the $1600 level has been a significant barrier, and therefore I would anticipate that there should be sellers there as well. However, if the daily candle can close above the $1600 level it would suggest that the market was to continue going higher, perhaps reaching towards the $1800 level over the longer term. Alternately, the market was to break down below the uptrend line it would then find support in the form of the 50 day EMA. Quite frankly, I don’t have any interest in trying to short gold right now because there are just far too many reasons to think that we will continue to see fear in the markets that could drive gold higher anyway. With that being said, the market is very likely to continue to be a “buy on the dips” type of scenario going forward and therefore I don’t see any reason to go against that. The coronavirus and a fear of slowing global growth of course will continue to be a couple of the main reasons why gold should find buyers.

Please let us know what you think in the comments below