Gold Price Forecast – Gold Markets Break Trendline

Gold markets have rallied significantly during the trading session on Monday as traders have continued to buy into the idea of inflation taking off. With this being the case, if we can break above the highs of the trading session on Monday, that should continue to put more pressure to the upside, perhaps opening up the possibility of a move towards the $1950 level. That is an area that has been significant resistance in the past and if we broke above there then we would almost certainly go much higher over the longer term.

Gold Price Predictions Video 18.05.21

Pay close attention to the US dollar, as it is a major driver of what happens with gold and metals in general. With this in mind, I think that as long as the US dollar is on its back foot, gold should continue to go much higher. However, if we were to turn around and close below the downtrend line that we just broke out of, then we may have some more work to do. In the short term though, I do think that short-term pullbacks will be buying opportunities, as gold clearly is changing its overall attitude, at least from an interim point of view.

Gold has been a bit of a laggard when it comes to the commodity markets, but it does seem like it is finally turning around so therefore I think it has further to run than many of the others. Beyond that, the Biden administration is now talking about sending out more money, and that of course will work against the value of the greenback as well. If that is going to be the case, then gold will be one of the first places that people throw money towards, as crypto markets have been hammered.

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