This article is linked to the video we have published on YouTube HERE. Please make sure to watch the video to the end, because it explains how the monthly time frame and candlesticks show the long-term direction of Gold price, and also so many other markets like EUR/USD, GBP/USD, Apple, Google, Amazon, etc. Also, please kindly like the video, if you think it is a useful video, and then subscribe to our YouTube Channel to receive our videos on time, so that you can be on time enough to take and manage your positions according to our market analysis videos.
Long Term Gold Price Forecast
Click Here to watch the video of this part that starts from 14:40.
When monthly candlesticks close, we analyze monthly charts more preciously, because as we always emphasize, the monthly time frame direction sometimes shows the direction of the markets for the next several years. Therefore, it is so important to check the monthly time frames, from time to time, and also when the new month starts which means the previous month candlestick closes and the new one opens. Even if you are a day-trader, you should never go against the monthly time frame, because you will have a higher chance to lose.
Please make sure to read these articles and watch the related videos to know more about the importance of the monthly time frame:
Also please watch this video: What Is the Most Important Time Frame in Forex and Stock Trading?
On Gold’s monthly time frame, July 2020 monthly candlestick closed above the highest price Gold has ever made at $1,920.80. This is really amazing, shocking and unbelievable, although we have explained in our previous videos that we expected this and waiting for gold to reach that resistance level at $1,920.80. We plotted the Butterfly Pattern you see on the below chart, about a few years ago, when the gold’s price was around $1,400. Our followers know that we were buying physical gold and we used to report it to our followers. But, it seems the most recent changes in the world made the gold price go up much faster than we expected. The reason is that because of the last several months problems, the world knows Gold as a safer market to invest, because all the other markets, or at least most of them look unstable and risky. You saw how the stock market crashed, and how many of the businesses collapsed recently and during the past several months. Although some companies like Amazon and Apple, and Zoom made a fortune, most other companies lost a lot and their stock markets crashed.
Where Is the Gold Price Going to Go From Now On?
I think it will go higher in long-term, simply because the current world problems is going to be continued for now, and even if they become resolved, the impact of the problems we had will affect the world for the next several years, according to what the economists say.
This doesn’t mean that you should buy gold now. I am talking about the long-term gold price forecast. It is possible that it goes down to retest the broken resistance level at $1,920.80, or goes up a little slower than what it did during the past several months, because the gold market is extremely overbought now. However, according to what we currently know, and as per the above explanations, gold price will go higher and higher during the next several years, most probably. I say most probably, because we never know what will happen. Something unusual can change everything. All we know is the price movement that has already formed on the chart, and also the past events. We don’t know about the future. So, even if you want to invest in the gold’s market, while everything is pointed to the up on this market, you must be careful not to put all your eggs in the basket of this market. You should always trade and invest with the money that you can easily afford to lose.
Click Here to watch the video of the below analysis that starts from 00:00.
The last closed monthly candlestick tested the downtrend resistance line on the monthly chart, but went down and closed below it. The upper shadow that has formed is meaningful. It means it is possible that the next monthly candlestick closes with a bearish body:
The last closed weekly candlestick and the upper shadow that it has formed says that most probably the next weekly candlestick is going to be a bearish candlestick as well:
On the daily chart, EUR/USD is still strongly bullish. You should ignore the short trade setups for now, to see what will happen on the monthly and weekly time frames. There is no new forming trade setup for now:
Click Here to watch the video of the below analysis that starts from 07:44.
Click Here to watch the video of the below analysis that starts from 11:45.
Click Here to watch the video of the below analysis that starts from 18:33.
Click Here to watch the video of the below analysis that starts from 19:24.
Click Here to watch the video of the below analysis that starts from 20:02.