Gold markets retreated somewhat during Wednesday’s trading session as we continue to see a lot of volatility in financial markets in general. That said, the market is likely to see a lot of noise in general, especially since the Senate seems to be leaning towards Democrats. If so, the market is likely to see the US dollar everywhere. In the long run, however, the gold market is expected to be the biggest beneficiary of a falling US dollar, which was already a factor, even before the Senate’s second round in Georgia.
Gold price forecast video 01.07.21
On the negative side, I believe that the previous downtrend line and the $ 1900 level offer plenty of support. Right now, the market is likely to see a certain demand, and that is assuming that we will get there. If all things are equal, the 50-day EMA is starting to rise from there, and if so, I think it’s only a matter of time before buyers come back. On the positive side, the $ 2,000 level would be the next target, followed by the $ 2100 level.
With enough time, I think we will not only go to that area, but much further, as the US dollar seems destined to lose extreme amounts of value over time. Even if it is not the case, it is also possible that the world has so many potential headlines that gold becomes a “safe trade”. In other words, I think this is becoming a “win-win situation”.
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