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Gold Weekly Price Forecast – Gold Markets Formed a Hammer

Christopher Lewis
·2-min read

Gold markets fell during the course of the week, reaching down towards the $1850 level again. This was an area where we had seen a bit of a bounce as of late, so it is not a huge surprise to see that there was a reaction. However, it is not as if it was an explosive reaction to the upside and quite frankly, I think that the $1800 level is much more interesting from a longer-term standpoint. We have the 50 week EMA coming into that area, and the 200 day EMA on the daily chart is starting to reach towards their as well. I think there is enough confluence therefrom the breakout that a lot of people will be interested in buying gold at that price.

Gold Price Predictions Video 02.11.20

Although I believe in gold longer term, it would make a bit of sense for the US dollar to pick up some strength and perhaps put an anchor around the neck of gold in the short term. After all, there is a lot of uncertainty out there and even though gold is a bit of a safety trade eventually, sometimes it takes a while for gold to shrug off the weight of the US dollar. The $1800 level is a large, round, psychologically significant figure, and with the confluence I think it just makes too much of a target for the buyers to be interested in.

To the upside, I believe that this market is probably going to go looking towards the $1950 level, and then eventually the $2000 level. I think it is likely to be a massive target and difficult to break above, but eventually I think it does happen. After all, central banks around the world will print like crazy sometime in the next few months.

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

This article was originally posted on FX Empire

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