Gold Weekly Price Forecast – Gold Markets Continue to Digest Longer-Term Gains

Gold markets have broken down significantly during the trading week, reaching down below the $1700 level. That being said, the market is likely to continue to see a lot of volatility, but at this point I would also recognize that there is a lot of support underneath. Ultimately, this is a market that is still bullish, despite the fact that this is an ugly candlestick. The 50 week EMA is approaching the $1600 level, which is an area that on the daily chart looks incredibly supportive as well. Ultimately, I do think that the market will try to go higher, and therefore I am looking at this as a potential buying opportunity from and investing standpoint.

Gold Price Predictions Video 08.06.20

Central banks around the world continue to print money as fast as they can, so having said that it is likely with the environment we are in that buyers will continue to look towards the gold market for safety. Furthermore, it is also likely that there has been a bit of liquidation due to margin calls in the stock market. After all, some people will have not only short the stock market but purchased gold as well.

In that case, it is probably likely that we will continue to see buying on dips, due to the fact that eventually we get back to the longer-term fundamentals. We see this happen occasionally in the gold market and I think it is a simple rotation to protect losses elsewhere. The jobs number was better than anticipated on Friday, but in the end, there are still plenty of reasons to believe that gold trading will still favor the upside over the longer term.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

• USD/JPY Weekly Price Forecast – US Dollar Reaching Towards Crucial 110 level

• GBP/JPY Weekly Price Forecast – British Pound Slamming Into Major Resistance

• Crude Oil Price Forecast – Crude Oil Markets Continue to Reach Towards Gap

• Natural Gas Price Prediction – Prices Whipsaw and Settle Lower as Rigs Decline

• US Stock Market Overview – Stocks Rally Following Unexpected Jobs Gains

• S&P 500 Earnings Preview – Next Week Entertainment and Retail Continue to Post Financial Results