Gold Price Forecast : Gold markets have drifted a little bit during the trading session to the downside on Friday, breaking below the 200 day EMA in signs of weakness.
Gold Price Forecast – Gold Markets
Gold markets have drifted below the 200 day EMA yet again, showing signs of weakness. Ultimately, this is a market that I think will perhaps reach towards $1800 level, but I think there is a significant amount of support at the $1800 level that reaches all the way down to the $1750 level. If we were to break down below there, then the trend in gold is probably going to become very bearish.
All things being equal, you should also pay attention to the interest rates in the United States, because the 10 year note offering more yield is toxic for the gold market as you can get paid to hold paper instead of storing the metal.
On the other hand, if we turn around and rally rather significantly, if we can break above the 50 day EMA that is, then I think that gold has an opportunity to turn things around. This is a market that I think will be choppy regardless of what happens next, so I think you probably are going to have to focus on very short-term charts, perhaps even as low as the 15 minute timeframe.
In general, I think that we have a lot of noise ahead of us but longer-term it will be interesting to see whether or not the US dollar falls enough to have people focusing on that yet again in order to start pushing the gold market higher. At this moment, gold looks a bit threatened and is long as we have a bit of deflation pressure, that will continue to cause major problems for the gold market in general.