Gold Price Forecast – Gold Markets Break Trendline

Gold markets have rallied rather significantly during the trading session on Monday to kick off the year. By breaking above the trend line, and quite frankly gapping over, this shows just how bullish this market could end up being. The US dollar is on its back foot due to stimulus and a lot of concern when it comes to the election in America, so that could have more people running towards gold. Remember, the Georgia Senate runoff is on Tuesday, and this could cause a lot of noise when it comes to the greenback. If the Democrats take control of the Senate, that means a “blue wave”, something that would be very negative for the greenback in general. Because of this, I believe that a lot of people are “hedging their bets”, and of course the general trend of the US dollar has been down for a while.

Gold Price Predictions Video 05.01.21

That being said, the dollar itself may not be reason enough to buy gold, because the bearish pressure on the greenback is overextended to say the least. Nonetheless, now that we are out of the way of the $1900 level, it looks like we are going to continue to go much higher. The $1950 level is an area that I pointed out as potential resistance, so if we can break above there then it is likely that we go much higher, perhaps reaching towards the $2100 before it is all said and done. The market looks very bullish at this point, so I like the idea of buying dips to pick up a little bit of value. I have no interest in shorting gold and have not had any for quite some time.

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