Gold Price Forecast – Gold Markets Get Boost to Open Week

Gold markets have pulled back rather significantly during the course of the trading session on Monday only to turn around and show signs of life. After all, we have broken the $1770 level during the day, but quite frankly I think there is still a lot of resistance above. While this has been a very bullish run, and it of course does verify the massive bullish candlestick that formed on Thursday. That being said, we are still below the 50 day EMA and a significant gap, so I do think that it is only a matter of time before selling pressure could return.

Gold Price Predictions Video 05.10.21

That is the trade I am waiting for. I am waiting for some type of exhaustive candlestick that I consider shorting again, but that is a matter of being very patient. If we can get a break above the neutral candlestick that was the most recent high, then I would entertain the idea of a breakout to the upside. The candlestick is rather supportive looking, but if we turn around a start selling off again, probably driven by the US dollar itself, then I am going to start shorting quite rapidly, as this is a market that is vulnerable to quite a bit of volatility.

With this being the case, I think you are probably best served by watching the US Dollar Index more than anything else, because it is the strong negative correlation between these two markets that a lot of people use as an indication as to where to be. One thing I think you can count on is a lot of noise regardless, but that is not necessarily how of the wheelhouse of gold to begin with.

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