Gold Price Forecast – Gold Markets Get Crushed

Gold markets initially tried to rally early during the Asian Globex session, but then sold off quite drastically to slice through the 50 day EMA. Ultimately, the $1900 level is important, as it is an area that has offered support. That being said, if we break down below there then I think we open up the trapdoor to lower levels. I would be very interested in gold closer to the $1800 level, which of course is a large, round, psychologically significant figure as well, and of course an area where we have seen a lot of both support and resistance.

Gold Price Predictions Video 22.09.20

The 200 day EMA is starting to reach towards the $1800 level as well, so that might tie and quite nicely for a longer-term bounce and interest by the longer-term “buy-and-hold” crown. Clearly, there are a lot of risks out there that could influence gold longer term, so that I think sets up quite nicely. At this point, it does not look likely that the $1900 level holds, but we still have plenty of hours during the day to change things. I am simply going to wait for a daily close to get involved, because the selloff has been so brutal.

With this being the case, I am looking for an opportunity to pick up gold for value, but I think we may have further to go so therefore I do not feel like there is a need to jump into the trade immediately. I like the idea of finding value based upon a daily close, so I will keep you up-to-date here at FX Empire.

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