Gold Price Forecast – Gold Markets Grind Higher

Gold markets have rallied a bit to kick off the week on Monday, reaching towards the $1890 level rather early. That makes quite a bit of sense, considering that the week is fraught with all kinds of headline risks. The most obvious one of course is the US election, but quite frankly we have the RBA kicking things off late Monday night, early morning in Asia. After that, we have the elections, and then of course we have the Federal Reserve and jobs numbers later in the week. In other words, I expect a lot of volatility and high potential for trouble. In that scenario, gold makes quite a bit of sense.

Gold Price Predictions Video 03.11.20

That being said, we could also see the US dollar drive down the value of gold, but that will more than likely be more or less a short-term phenomenon. I do believe that gold will continue to rally over the longer term, but we may need to drop all the way down to the $1800 level to see massive amounts of demand. That should be an area where we should see longer-term traders coming back into the market, perhaps trying to pick up big moves back towards the $2000 level.

I do not have any interest in selling gold at the moment, because quite frankly I can find too many reasons for it to go higher. This does not mean it has to in the short term obviously, but over the longer term with central banks out there doing everything they can to flood the markets with currency, eventually gold gets a bid again.

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