Gold Weekly Price Forecast – Gold Pulls Back for The Week

The gold markets continue to be noisy in general, as we still have not decided what is going on with stimulus in the United States. The markets are ripe for continued pullbacks, mainly because the US dollar continues to see a bit of a bid, mainly due to the fear trade out there, and of course the EU is seeing more virus numbers and as a result the markets are selling the Euro.

Gold Price Predictions Video 19.10.20

The overall structure is one of a potential bullish flag, and this could also ignite more potential buying. The markets pulling back would also find plenty of value hunters underneath, especially near the $1850 level, where the market bounced from before. The $1800 level is an area that is even more important, as it was the scene of a major breakout. The area should continue to see “market memory.” The 50 week EMA is approaching that region as well, and this should continue to offer yet another reason for buying.

The market is likely to go towards the $2000 level given enough time, but between now and the election, I believe that we will see more of a sideways move, perhaps with a slow downward tilt. However, this should be thought of as a potential value play, as stimulus will certainly come after the election, and central banks of course continue to be very loose with monetary policy worldwide. This drives money into “hard assets.” Gold is one of the best markets to avoid devaluation of the fiat currencies around the world. The market is not one that I have any interest in selling.

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