Gold Price Forecast – Gold Sells Off Hard to Kick Off Week

Gold Markets Technical Analysis

The gold market plunged in the early hours on Monday as traders are trying to do anything and everything they can to protect their portfolios and what seems to be a global sell-off in risk assets around the world. While this flies in the face of traditional thinking when it comes to gold, the reality is that the market is one that’s being liquidated in order to bring in profit to cover other losses.

This happens quite a bit with levered funds and therefore it wouldn’t be surprising at all for me to turn around and buy this relatively soon. The 50-day EMA is sitting underneath and then again, we have a trend line and then after that we have the $2,300 level. It’s not until we break through all of that that I would be concerned.

I do recognize that this market has sold off quite brutally and quickly, but when you look around the world, you see that everywhere. That being the case, I don’t think this has that much to do with gold and probably more to do with the idea of cashing out profits to protect portfolios around the world. There are certainly enough geopolitical concerns and issues with yields crashing that could turn things around so it is a safety trade still but right now we’ve got this knee-jerk reaction to deal with I will take this on a day-by-day basis. Ultimately, patience will be needed in order to benefit from this move. I have no interest in shorting gold at this point.

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