Gold Price Forecast – Forced Selling Of Yellow Metal

Gold markets fell hard during the session on Friday, as we have sliced through the $1600 level. By doing so, the market shows signs of extreme weakness as we have not only broken through a big figure, but we have also touched the 50 day EMA. Looking at this candlestick, it is extraordinarily negative, but at this point if we break down below the 50 day EMA it could unwind this market even further. The $1550 level will be the next target, and then eventually the $1500 level. At this point, any rally needs to clear the $1600 level on a daily close to begin buying. If we do that before the weekend, then it might be a bit of speculation that the server banks around the world looking to cut interest rates, but quite frankly that is still a gas.

Gold Price Predictions Video 02.03.20

If the market gets news over the weekend, this could be an extraordinarily volatile place to be. Quite frankly, pay attention to the $1600 level to determine which direction you should be trading, but you won’t be able to have that information until the markets open up. This weekend could be extraordinarily important for gold, so to suggest that we know what’s going to happen before all of the news gets out of the way would quite frankly be ineffectual. The world is certainly teetering on the edge of panic, and eventually that should help gold but we don’t know where the bottom is quite yet.

This article was originally posted on FX Empire

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