Gold Price Forecast – Gold Markets Continue to Stabilize

Gold markets have pulled back a bit during the trading session on Monday but have also seen buyers underneath to continue to support the market. Gold markets of course have been very susceptible to the whims of the US dollar, which is possibly a bit oversold. With that being the case, we may have more of a grind ahead of us in order to lift gold but think of this as “building a base.”

Gold Price Predictions Video 15.12.20

The stimulus of course will be the number one thing that people are paying attention to, and if Congress can pull itself together in order to put some stimulus package together, then it is likely the gold will be one of the main beneficiaries. That being said, never underestimate the ability of politicians to mess things up. If you want to see a good example that, take a look at Brexit over the last several years. Because of this, unfortunately the gold market is going to be susceptible to the latest headline, which means drama.

Underneath we have the 200 day EMA sitting at the $1800 level, which would of course offer a certain amount of psychological support. Ultimately, I do think that it is only a matter of time before the buyers come back, but we need some type of help from politicians. The central banks around the world continue to flood the markets with money and with the massive amounts of stimulus that we have seen during the last few months, it should eventually translate to higher gold prices. At this point, it simply comes down to whether or not you have the wherewithal to hang on to a position.

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