Gold Price Forecast – Gold Markets Find Support at 200 Day EMA

Gold markets have initially fallen during the trading session on Wednesday to reach down towards the 200 day EMA. That is an area that has offered significant support, so it does look like we are ready to go higher again. If you look at the last couple of weeks, you can clearly see that the gold market has been trying to form a bit of a basing pattern, which means that we could be seen quite a bit of accumulation. A break above the 50 day EMA almost certainly would have gold looking towards the $1900 level, and then possibly 1960 after that.

Gold Price Predictions Video 28.01.21

To the downside, the 200 day EMA continues to offer significant support but I do think there is even more support down at the $1800 level. It is not until we break down below the 1750 level that I would be concerned about gold, and obviously we would need to see a strong US dollar simultaneously. So far, it looks like we are just trying to build up enough momentum to keep the longer-term uptrend going, and if you look back several months you can see that we have been bouncing along this area for quite some time. In other words, the longer-term investors are simply hanging onto their positions.

At this point, it is probably only a matter of time before we launch higher but that does not necessarily mean you need to jump in with both feet. Adding slowly and then jumping into gold once it breaks above the 50 day EMA with a bit more is how I plan on trading this market going forward.

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