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Christopher Lewis
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Gold

Gold markets have rallied a bit during the trading session on Monday to reach towards the 200 day EMA, but then gave back the gains to form a bit of a shooting star. The shooting star suggests that we are running out of momentum, but more importantly we are stuck between the 50 and the 200 day EMA indicators. That suggests that the market probably has a lot of noise in this area, and if that is going to be the case it is likely that we will see this market gyrate.

Gold Price Predictions Video 20.04.21

Pay close attention to yields in America, because if they start rising again that will be toxic for the gold market, and we are starting to see a little bit of that happen. If we break down below the 50 day EMA, the market then goes looking towards the $1750 level, and a breakdown below that level opens up the possibility of a move even lower. The market breaking down below the double bottom underneath could open up the possibility of a move towards the $1500 level. On the other hand, if we turn around and break above the 200 day EMA, that is possible that this market may enter a bit of an uptrend.

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It will be interesting to see how this plays out, but right now I think we are looking at a scenario that a bigger move is coming sooner rather than later, so waiting for that explosive candlestick is what we can do, as we can see, that will quite often lead to bigger moves if you just look back at previous price action. Gold does tend to be very volatile at times, and it certainly looks like we will see more of that going forward.

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

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