Gold Price Forecast – Gold Markets Find Exhaustion

Gold markets have rallied a bit during the trading session on Wednesday again, as the gold markets continue to get a bit of a boost. However, we have seen the market give up some of those gains to form a bit of a shooting star, and therefore I think what we are looking at is a potential pullback towards the $1850 level. That is an area that was important in the past and therefore I would anticipate that the market would offer support.

Gold Price Predictions Video 27.05.21

If we break down below there, then the market is likely to look at the downtrend line as potential support, as well as the “golden cross” that has just happened between the 50 day EMA and the 200 day EMA. With that being the case, I think there are buyers underneath, but a little bit of a pullback might be in order. After all, the US dollar is oversold and with that in mind I think what we have got is a scenario where the value hunters will come back into the picture, taken advantage of any dip that they see. If we break down below the $1800 level though, then we could see a lot of trouble. At that point I would anticipate that the uptrend is over, and we would continue to see a lot of massive selling pressure, perhaps while interest rates start to spike. If that is the case, we could see a nasty turn around sometime later this year. In the meantime, it looks like value hunters will more than likely going to be somewhat well supported.

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