Gold Price Forecast – Gold Markets Continue to Build Support

Gold markets have fallen initially during the trading session on Wednesday only to find buyers yet again near the $1750 level. By doing so, it shows that there is a case being made underneath to perhaps turn this market around. I do believe that a lot will be settled on Friday, as we get the jobs number coming out of the United States. That being said, the market is likely to continue to be very noisy over the next couple of days, as we have no real clarity going forward.

Gold Price Predictions Video 07.10.21

The US dollar rallying or falling will have a lot to do with where this market goes next, due to the fact that the greenback does tend to be negatively correlated to this market and of course we also have the bond market offering higher rates, which can work against the value of gold, if for no other reason than you have to worry about paying storage fees. The market clearly has seen a lot of support underneath at the $1750 level, so if we break down below there it is likely that we could drop towards the $1725 level. Breaking down below that level then opens up a huge move lower just waiting to happen.

On the other hand, if we were to break above the highs from the Monday and Tuesday session, it could very well send this market towards the 50 day EMA, possibly even the 200 day EMA above. Nonetheless, the only thing that I do know is that you need to keep your position size somewhat small, due to the fact that we have seen so much in the way of volatility, and probably will continue to see this going into the next few days.

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