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Gold Price Forecast – Gold Markets Break Support

Christopher Lewis
·2-min read

Gold markets broke down during the trading session on Wednesday as we sliced through the $1900 level. This is a very negative turn of events, and therefore it looks like we are going to continue dropping from here. I had talked about this previously, that we could go down towards the $1800 level. That is an area that even more supportive than the $1900 level was, and the fact that we had been making “lower highs” at me a bit concerned for the uptrend.

Gold Price Predictions Video 24.09.20

Ultimately, this is a market that I do not want to start shorting, even though I recognize that the US dollar is very strong at the moment. That being the case, I think that we are eventually going to find plenty of buyers down at the $1800 level as it was a major resistance barrier previously. With this, I like the idea of buying dips down near that area, especially on a daily candlestick that shows promise. Something like a hammer in that general vicinity would be perfect, but right now we need to see whether or not we can find the stability coming back into play. The 200 day EMA sits just below the $1800 level, so it would make quite a bit of sense that we could see quite a bit of interest in this area.

To the upside, if we can break back above the $1900 level, we could make a significant bounce, but right now it does not look very likely to be an easy thing to do without some type of significant supportive movement. We need some type of catalyst, namely the US dollar selling off.

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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