Gold Price Forecast – Gold Markets Await Longer Term Signal

Gold markets have drifted a little bit lower during the trading session on Wednesday as we await the Federal Reserve statement, and quite frankly this point in time gold looks very bullish but is testing the top of what I think of as a “support block” that runs all the way down to the 200 day EMA at the $1812 level. After all, the downtrend line that slices right through there, and of course we also have the 50 day EMA which is sitting at the $1850 level, an area that has been both support and resistance recently.

Gold Price Predictions Video 17.06.21

Looking at the overall attitude of the market, if we were to break down through all of that support, this could open up a huge move towards the double bottom that formed just below the $1700 level. Furthermore, I think it would also send this market much lower, so that is something worth paying attention to. On the other hand, if we turn around and rally from here it is likely that we could go looking towards the $1915 level, which is the top of the consolidation area that we have recently been in.

Breaking above their opens up the possibility for a move towards the 1950$ level, and then possibly even towards the $2100 level over the longer term. All things been equal, I think this is a very volatile and choppy situation just waiting to happen, so keep in mind that you should keep your position size relatively small, and at once we get some type of clarity in order to build up position sizing.

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