Gold Price Forecast – Gold Markets Fighting to Stay in Consolidation

Gold markets initially fell during trading on Tuesday but found enough buyers underneath to pick things up a little bit. By doing so, it looks as if gold is trying to stay in the consolidation it has been in for a while. Nonetheless, this is a market that will probably continue to see a lot of downward pressure just above, especially near the $1800 level. The $1800 level has been important more than once, and therefore it should not be a huge surprise to see that it could offer a bit of resistance. Looking at this chart, the 50 day EMA is starting to cross just below the $1800 level as well, right where the 200 day EMA sits. This is known as the “death cross”, which is a longer-term negative signal.

Gold Price Predictions Video 08.12.21

If we can take out the $1820 level, then it is possible that we could go much higher, perhaps reaching towards the $1875 level. Anything above there becomes more or less a “buy-and-hold” type of market, but I do not see that happening anytime soon. The US dollar has been strengthening which of course works against the value of the gold market, but at the same time real rates are going to be important as well.

If we were to break down below the $1760 level, then it is possible that we could go looking towards the $1725 level next, which has been support previously. After that, we could be looking at a move all the way down to the $1680 level. Anything below there would be catastrophic for gold, sending it reeling much lower. I do not think that either one of these extreme scenarios happen though, as we just continue to trade back and forth in this general vicinity.

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