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Gold Price Forecast – Gold Markets Fail at 50 Day EMA

By:
Christopher Lewis
Published: Aug 17, 2021, 15:54 UTC

Gold markets initially rally during the trading session on Tuesday but have fallen quite a bit to turn around and form a less than bullish candlestick.

Gold Price Forecast – Gold Markets Fail at 50 Day EMA

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Gold markets have rallied during the trading session on Tuesday but found a lot of trouble at the 50 day EMA. The 50 day EMA is a technical indicator that a lot of people have been paying attention to in the gold market, and the fact that we have pulled back from there suggests that we are running out of momentum. That being interesting thing to pay attention to, because we had seen such a massive selloff previously, only to see the market recover quite impressively. We also have the 200 day EMA sitting at the $1870 level, and I think that is your hard “ceiling in the market” at the moment.

Gold Price Predictions Video 18.08.21

If we break down below the bottom of the candlestick then I suspect that we are probably going to go looking towards the $1750 level, which was a significant support level previously. If we break down below there, then it opens up a move towards the lows that we had hit over the last couple of weeks. The $1680 level is an area that we have bounced from a couple of times, and of course is going to attract a lot of attention due to a previous “double bottom.” Breaking down below that level then opens up the possibility of a move down to the $1500 level which of course would attract a lot of headline attention as well.

Keep in mind that there is a major negative correlation between the US dollar and the gold markets in general, so if we continue to see the US dollar strengthen, that will more than likely drive gold prices lower.

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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