Gold Price Forecast – Gold Markets Have Wild Ride in Thin Markets

Gold markets have gone back and forth during the trading session on Monday, as the coronavirus figures in the United Kingdom are rising, and of course there is a huge concern about the new strain. That being said though, it was a bit of an overreaction due to the fact liquidity was very thin. The market broke down below the 50 day EMA, but then turned around to show signs of strength again. All things being equal, this is a market that I think is likely to continue going higher, perhaps reaching towards the $1950 level, but it is obviously going to be very noisy. Keep in mind that the gold markets have a negative correlation to the US dollar, and therefore it is worth paying attention to that as well.

Gold Price Predictions Video 22.12.20

To the downside, the 200 day EMA sits at the $1800 level, and that should essentially be your “floor the market” when it comes down to the gold market uptrend. To the upside, the $2000 level would be a longer-term target, perhaps even the $2100 level. At this point in time, I have no interest in shorting gold, but I do like the idea of buying short-term dips, as there are plenty of reasons to think that stimulus in the United States is only going to continue to grow, not to mention the fact that there is a certain amount of a “safety trade” when it comes to gold. That does not mean that we go straight up in the air, but the most recent action certainly has given us a bit of a positive attitude going forward from everything that I see.

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