Gold Price Forecast – Gold Markets Continue to Show Choppiness
Gold markets initially rally during the trading session on Tuesday but gave back the gains as we have broken back down below the $1900 level. As you can see on the chart, I have made a purple circle showing the general area where we should be trading. With this being the case, I think that the market is likely to see a lot of noisy behavior, as we try to figure out whether or not the breakout is going to stick. Furthermore, the $1900 level is important, so you should be paying close attention to it overall.
Gold Price Predictions Video 02.06.21
If we can break above the highs at $1919, then the market is likely to go looking towards the $1950 level, which of course is an area where we have seen quite a bit of resistance previously. Ultimately, the market is going to continue to see a lot of noisy behavior and will have to make a significant decision. If we do break down from here it is likely that the $1850 level could be support, just as the downtrend line underneath that could be. Further compounding that is that the 50 day EMA is reaching towards that area.
Your capital is at risk
The 50 day EMA does tend to attract a lot of attention, so pay attention to it. All things been equal, I do not have any interest in shorting this market in the short term, so therefore I like the idea of looking at this as a “buy on the dips type of experience just waiting to happen. There are a lot of people out there worried about inflation, and that does tend to help gold more than anything else.
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