Gold Price Forecast – Gold Markets Continue to Show Weakness

Gold markets have gapped lower to kick off the trading session on Wednesday, but then turned around to test the 200 day EMA. The 200 day EMA of course is an area that a lot of people will pay close attention to, so do not be surprised at all to see the resistance coming to the picture. The market breaking down from here would take a little bit more momentum, and eventually we could go looking at the $1775 level. If we can break down below there, then it is likely that we go looking towards the $1750 level.

Gold Price Predictions Video 09.09.21

Pay close attention to the US dollar as it has a negative correlation to the gold market, and that of course comes back into the picture. Ultimately, I do not believe that there is any real reason to buy this market until we can clear the $1835 level, where we had seen a significant amount of selling pressure. In fact, the $1835 level is essentially the same thing as a “brick wall”, and therefore I think it is can it take a lot of momentum to make that finally happen.

If we clear that area, then it is likely that there will be a rush of short covering into the market, which of course would have a lot to do with squeezing this market higher. I do not see that happening though, so at this point in time I think the US Dollar Index is worth paying attention to as it could give you a little bit of a “heads up” as to where we are going next.

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