Gold Price Forecast – Gold Markets Pull Back Again
Gold markets have fallen a bit during the trading session on Friday to reach down below the $1750 level again but have since bounced a bit. In other words, we are banging around the 50 day EMA in order to find some type of directionality. Looking at this chart, if we break down below the bottom of the lows from both Thursday and Friday, that opens up a move down to the lows again, just below the $1700 level.
Gold Price Predictions Video 12.04.21
Interest rates in America did rise during the trading session, so it should not be a huge surprise to think that gold would fall in that scenario. Because of this, I think that the market will probably be very noisy, and I think that would be the case going forward. However, if we were to take out the 50 day EMA to the upside, the next logical target would be the 200 day EMA which sits just below the $1800 level. If we break above there, then it is likely that we could go looking towards the $1850 level.
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To the downside, if we were to break down below that little “double bottom” on the chart, that opens up a massive move to the downside to reach towards the $1500 level, possibly even lower than that. All things been equal, this is a market that I think continues to see noisy behavior so the one thing that you will have to be cautious about is the position size of your trade, because I would anticipate that occasionally we could get the noisy reaction to the bond markets and inflation expectations in the United States and beyond. It is worth noting that as long as that double bottom holds, there is hope for higher pricing.
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