Gold Price Forecast – Gold Markets Continue to Struggle

Gold markets have fallen a bit from the initial opening during the trading session on Monday as we continue to see a lot of concern around the yellow metal. The US dollar continues to work against it, but quite frankly this is not a situation where people are overly concerned, due to the fact that interest rates suggest that inflation may have peaked. If that is going to be the case, that takes away the entire “inflation narrative” the gold traders tend to rely on.

Gold Price Predictions Video 07.12.21

It is also worth noting that the 50 day EMA is now crossing below the 200 day EMA again, forming the so-called “death cross.” Obviously, this is a very late signal, but longer-term traders do pay some attention to it. With this being the case, it is very likely that we will continue to see a lot of noisy behavior, but I do think that all things been equal, this is a market that you are looking for excuses to sell, not by. Underneath, I see the $1760 level as supportive, and breaking down below that could open up fresh selling. At that point in time, then I look for gold to go to the $1725.

To the upside, we would need to clear the crucial $1820 level in order to show signs of life again, something that does not look very likely to happen in the short term. Because of this, I am looking for signs of exhaustion that I could start shorting, using shorter-term charts as entry tools and what has been a very reliable downtrend over the last several weeks.

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