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Gold Price Forecast Video: Buying Continues

gold price forecast
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EDITOR NOTE: What you’re about to view is a technical breakdown of gold from a trader’s perspective. We know that not many of our readers are technical traders, so I’ll try to break this down to the essential points. Right now, buyers are jumping back into the market. Why here, and why now? Since gold’s March 2020 low of 1,450 an ounce, and its August high of 2,089 an ounce, gold retraced 50% of its movement. This is a critical spot, because those who bought near the lows, and those who “shorted” gold near the top--both are profitable at this very moment. It can’t stay that way forever. One position--long or short--has to give. Ultimately, what drives gold are long-term fundamentals. Given the unprecedented rise in the money supply and the threat of high inflation that accompanies money creation, the short sellers know that it’s only a matter of time before gold bounces back for the next leg up. That time is now, which is why gold buyers are clamoring to get more of the yellow metal, especially in light of tight supply. This is why we’ve been saying, ever since the pullback, that now is a tactically-favorable time to buy non-CUSIP gold. Better to buy gold when it's down than to buy it toward the middle or end of its multi-decade supercycle.

Gold markets have initially pulled back a bit during the course of the trading session on Tuesday to break down below the $1800 level. However, the buyers came back in to push this market to the upside and form a little bit of a hammer shaped candlestick. It is interesting to note that we have seen support underneath in the form of a couple of neutral candlesticks, sitting just above a major support level. The $1750 level is a major support level on the longer-term charts, so we need to pay close attention to it. Quite frankly, if the market were to break down below the $1750 level, it could be somewhat disastrous for the gold price. The fact that we held out here is a very bullish sign, and quite frankly was needed.

Originally posted on FXEmpire

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