Gold Price Forecast – Gold Markets Continue to Grind Towards 50 Day EMA
Gold markets initially pulled back during the trading session on Monday, but then turned around to show signs of life again. At this point in time, the market looks as if it is going to continue to struggle just above though, as the 50 day EMA sits right at the large, round, psychologically important $1900 level, and therefore I think the upside is probably somewhat limited, especially as we had seen such significant selling just above that area. Ultimately, this means to me that we probably have somewhat of a limited upside from here, and therefore I think if we get some type of exhaustion, sellers will probably jump back into the market to push lower.
Gold Price Predictions Video 17.08.21
Keep in mind that the gold market is also highly sensitive to the US dollar, so if it starts to strengthen again that could put pressure on this market. Furthermore, we need to pay close attention to the 10 year yield, because as it has risen recently, it has worked against the value of gold. Ultimately, when it falls it makes quite a bit of sense that gold might rally. That being said, if people are piling into bonds out of fear, and that could help gold as well.
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If we were to break down below the $1750 level, then I think we go much lower, perhaps reaching towards the $1680 level yet again, an area that has been massive support more than once. With that in mind, I think this is probably going to be a scenario where we need to pay close attention to the greenback in general, as it will have a massive influence on this market.
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