Gold Price Prediction: Gold Markets Will Be Punished on Thursday

During Thursday’s trading session, gold markets have been pummeled as the US dollar has surged significantly.

Gold has declined significantly during Thursday’s session, dropping significantly below the $1850 mark. Currently, it appears that the market will continue to experience downward pressure, but I believe that this will prove to be an excellent purchasing opportunity. After all, the $1800 level should be supportive, and we have been in a channel for quite some time. The 50-Day EMA has recently broken above the 200-Day EMA, establishing the so-called “golden cross.” This is a longer-term positive indication, thus many investors will likely view this as a potential longer-term “buy-and-hold” signal.

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Given the magnitude of the move, the size of the candlestick will likely indicate some continuation. However, I do not believe that this is a trend-shifting move; rather, I believe that the market had simply gotten too far ahead of itself and needed a catalyst to begin selling off again. Keeping this in mind, I’ll be looking for purchasing opportunities at the first hint of a rebound. It is possible that the move will occur early the next week, unless Friday’s employment report utterly disproves the notion of a heated labor market.

The ADP employment report was released on Thursday, signaling that the United States economy is still overheating and that the Federal Reserve has much work to do. Nevertheless, it is important to note that the ADP tends to be, to put it mildly, noisy, so we could be in for a massive surprise in the opposite direction.

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