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Christopher Lewis
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Gold markets initially pulled back during the trading session on Tuesday but found buyers to continue the move to the upside. If we can break above the $1800 level on a daily close, then I think the market has the momentum to go looking towards $1850 level, and then possibly the $1950 level. At this point in time, the gold market does look as if it is trying to make a certain amount of a move to the upside, but we have some work to do to finally get to the upside.

Gold Price Predictions Video 05.05.21

On the other hand, I would be a bit cautious about shorting here, at least not until we break down below the $1750 level. We are still stuck between the two EMA indicators that I have been paying attention to, but it certainly looks as if the buyers are trying to step in and change everything. If that is going to be the case, then it makes quite a bit of sense that we will have a bigger move, as we recently had put in a double bottom, which of course is a very strong sign.

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Because of this, the market is likely to see a break above the 200 day EMA in order to go higher. Ultimately, this is a market that I think is definitely looking at going higher, but we need to pay attention to the US dollar. If the US dollar starts to fall again, that would be without a doubt a bit of the fuel needed.

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

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