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Gold Price Forecast – Gold Markets Continue Sideways Action

By:
Christopher Lewis
Updated: Jun 8, 2021, 16:39 UTC

Gold markets have gone back and forth during the course of the trading session on Tuesday as we continue to hang about the $1900 level.

Comex Gold

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Gold markets have gone back and forth during the course of the trading session on Tuesday but as you can see, we are hanging about the $1900 level, simply killing time. Gold has a lot of questions surrounding it right now, not the least of which is whether or not inflation is going to pick up. That being said, I think that the market will eventually find some type of catalyst, but right now we are just treading water around a big figure.

Gold Price Predictions Video 09.06.21

Underneath, the $1850 level has a significant amount of support, especially as the 50 day EMA starts to reach towards it. Remember, we had seen a breakout above the downtrend line, and therefore I think what we probably need to pay attention to is the fact that we have broken out, but not only that the fact that we have stayed appear. Nonetheless, it certainly looks as if we are struggling to go higher for a bigger move. With that in mind, I believe that what we will probably see is choppy behavior until Thursday, when we get the CPI figures.

The CPI figures could give us an idea as to what is going on with inflation, and whether or not it is picking up. If it does continue to strengthen, that should push gold higher, perhaps reaching towards the $1900 level, and then eventually the $2100 level after that. On the other hand, we could see this market turn around and show signs of negativity, but it is not until we break down below the 200 day EMA that I would be a seller of gold. In the short term, I think you are essentially looking at “dead money” going forward.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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