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Gold Price Forecast – Gold Markets Continue to Hover at 200 Day EMA

By:
Christopher Lewis
Published: Jul 9, 2021, 16:25 UTC

Gold markets have rallied just a bit during the trading session on Friday, reaching towards the 200 day EMA yet again.

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Gold markets initially pulled back just a bit during the trading session on Friday, but then turned around to rally towards the 200 day EMA. The 50 day EMA is above there, and it should also be noted that we have formed several shooting stars, which show signs of exhaustion. If we were to break above the shooting stars from the last week or so, then it is very possible that we go looking to fill the gap above which would mean a move towards the $1860 level.

Gold Price Predictions Video 12.07.21

If and when we can break above the top of the gap, then it allows more of an upward move, perhaps testing the $1910 level before breaking out towards the $2100 level. To the downside, the $1750 level would be a major support level, and an area where we had previously seen resistance. Because of this, the market will obviously pay quite a bit of attention to that area.

If we break down below that level, then the double bottom at the $1680 level comes into play, as a major floor. Breaking below that would send gold into a tailspin, perhaps dropping all the way down to $1500 rather quickly. While I do not necessarily think that happens easily, it is something that the market is threatening to do based upon what we have seen as of late. Furthermore, you should keep in mind that the volume this time a year can be a bit thin, and of course we have a lot of noise out there when it comes to the bond yields in America, which also come into play.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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