Gold Price Forecast – Gold Markets Gap Higher to Kick Off the Week

Gold markets have gapped higher to kick off the week but have failed to hang on to the gains for the bulk of the session. This is not to say that gold is suddenly going to sell off, but it is obvious that we have a certain amount of supply/resistance near the $1950 level that will need to be dealt with. Because of this, the market is very likely to struggle to go higher with any ease, and as we get closer to the US elections, we will probably continue to see the US dollar get very choppy as well. In other words, I think we are in the midst of trying to form some type of bottom, but this is more of a process instead of a sudden turn around most of the time.

Gold Price Predictions Video 13.10.20

To the downside, the $1900 level should offer a certain amount of support, and after the Friday candlestick it is certainly a sign that we could continue to rally given enough time. A break above the highs of the Monday session opens up the move towards the $1950 level, and then by extension possibly the $2000 level. I think breaking above that level will take a significant amount of momentum, and perhaps even some type of news item.

Even if we do break down from here, I believe that the “floor in the market” is at the $1800 level, so it is not until there that I began to think about shorting gold. With the 200 day EMA sitting just below that level, it would make quite a bit of sense that both the large, round, psychologically significant figure, and the moving average costs people to think about buying gold “on the cheap.”

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