Gold Price Forecast – Gold Plunges in The Early Hours of Friday

Gold Markets Technical Analysis

The gold market plunged quite drastically during the early hours on Friday, as it looks like we are hell bent on racing towards the $2,400 level. I find this interesting because I think that could be a good entry point. We’ll have to wait and see. What I want to see is the market test that area and then bounce and hold it. If it does, it makes a lot of sense. That was an area that was previously resistant to prices. The 50-day EMA is closer to the $2,350 level, but it is rising at a pretty sharp angle.

So, it does suggest that perhaps the market is going to continue to see value hunters. A lot of this will come down to the US dollar and what it’s doing, and it’s probably worth noting that the US dollar is strengthening, so that is causing a little bit of trouble for gold. Nonetheless, this is a market that has plenty of things going for it, not to mention geopolitical issues. And of course, central banks around the world are buyers of gold as well.

Interest rate cuts should help gold, at least in theory, so we’ll have to wait and see how that plays out. But I think any bounce at this point in time probably sends the market straight back up. So, I believe that the Friday candlestick is going to be very crucial in determining whether we buy it here or if we maybe let it come back into the previous consolidation before buying it.

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