Advertisement
Advertisement

Gold Price Forecast – Gold Markets Continue to Pressure Major Resistance

By:
Christopher Lewis
Published: Oct 20, 2021, 15:50 UTC

Gold markets have rallied a bit during the course of the trading session on Wednesday to go looking towards the downtrend line that I have marked on my chart.

Gold Price Forecast – Gold Markets Continue to Pressure Major Resistance

In this article:

Gold markets have rallied a bit during the course of the trading session on Wednesday to go looking towards the $1790 level. This is an area that is stuck between the 200 day EMA and the 50 day EMA, and therefore it is likely that we could see a little bit of noise. Furthermore, we also have the downtrend line that I have marked on the chart and that has been important just above. The 200 day EMA which is sitting at the $1795 level, and then of course the all-important $1800 level. The $1800 level has a certain amount of psychological significance attached to it, and therefore I think a lot of people will be paying close attention to this area. If we can break above the $1805 level, then we may have something going.

Gold Price Predictions Video 21.10.21

At this point in time, you can also make an argument for a massive descending triangle, so one would think that there is yet another reason to assume that the markets will continue to face bearish pressure. However, if we break above the $1805 level, then it could show a complete breakdown of the downtrend, allowing the market to rally quite significantly. All things been equal, I think the one thing you can probably count on is a lot of noisy behavior in general, so you need to be cautious with your position size, but it still looks as if we have a lot of trouble just above waiting to cause major issues. Pay attention to the US Dollar Index, it has a massive negative correlation to this market most of the time.

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.

Did you find this article useful?

Advertisement