Gold Price Forecast – Gold Markets Break OutGold markets have broken out above the $1750 level during early trading on Thursday, but now face the 50 day EMA.
Gold markets have broken out above the $1750 level during the trading session on Thursday, but are now challenging the 50 day EMA, a technical indicator that a lot of traders will pay close attention to. With that being the case, I think it is probably only a matter of time before we get a pull back. It could be a pullback into the previous consolidation, or it may be a pullback that is looking for support at the $1750 level. If it finds it there, then we could make an argument for a potential break out.
Gold Price Predictions Video 09.04.21
All things been equal though, interest rates in America are continuing to climb longer-term from everything that I see, and that works against gold, at least for the time being. With that in mind, I still am a bit leery about buying gold but if we get a daily close above that 50 day EMA then I believe that gold will probably go looking towards the 200 day EMA again. Currently, that sits near the $1800 level, so that of course would attract a certain amount of attention in and of itself. Breaking above there then allows the market to go another $50, where we had seen previous selling.
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I think gold is in the midst of trying to figure out whether or not it is done selling off or if we are going to go much lower. Right now, it does look like the buyers are trying to make a bit of a move into the market, or perhaps some short selling has finally been covered. Either way, it looks as if we are trying to bounce but this is a market that still needs to “prove itself.”
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