Gold Price Forecast – Gold Gives up Early Gains After ECB Meeting

Gold markets have initially tried to rally during the trading session on Thursday but gave back gains as we approached the $1800 level. The ECB meeting was going on at the same time, so you could make a little bit of an argument for central bank noise and interference. That being said, I think the fact that the 50 day EMA and the 200 day EMA had something to say as well, as they are both going sideways. Both of those indicators are widely followed, so a lot of algorithmic traders might have been interested there. Furthermore, when you look at the candlestick that led to the selloff, massive red candlestick like that very rarely happen in a vacuum.

Gold Price Predictions Video 10.09.21

I think at this point, we are trying to build up the necessary momentum to break down even further, as the $1835 level has offered such a “brick wall” when it comes to trading. Obviously, if we were to break above there it would be an extraordinarily bullish sign and could send this market screaming to the upside. However, I just do not see that happening, at least not easily. We would need to see some type of monumental meltdown in the US dollar to make that a reality in the short term.

To the downside, if we were to break down below the $1775 level, then it is likely that we could go looking towards the $1750 level, followed by the $1680 level which is where that massive “double bottom” formed several weeks ago.

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