Gold Price Forecast – Gold Markets Rally Significantly

Gold markets continue to be very noisy, as we see the 200 day EMA offer resistance right along with the $1800 level, and of course the downtrend line that I have drawn on the chart. Quite frankly, this is a market that continues to see a lot of volatility, but at the end of the day I do not necessarily believe it is something that we need to be overly concerned about. After all, this is a market that still has a lot of downward pressure on it, but the fact that bond yields were falling during the day suggests that perhaps money is flowing into gold. It is a constant “push pull” between the 10 year yield in this market.

Gold Price Predictions Video 05.11.21

If we can break above the $1810 level, then it is likely that the gold market has much further to go. That being said, I do not necessarily anticipate that happening anytime soon, so it does make a certain amount of sense that we would pull back from this level not only due to resistance, but the fact that we got here in the blink of an eye.

At this point, I much more likely to fade this market on signs of exhaustion, perhaps reaching down towards the 50 day EMA in the short term, lower than that over the longer term. We are in a downtrend for a reason, and until we break above the $1835 level, I still look at this is a market that has a lot of pressure sitting just above and causing some issues. With that being the case, I think it is much easier to short signs of exhaustion than anything else. Keep in mind that Friday is a jobs number announcement, so that will cause a lot of noise as well.

For a look at all of today’s economic events, check out our economic calendar.

Read More: Gold Price Forecast – Gold Markets Rally Significantly

You might also like