Gold Price Forecast – Gold Markets Get Crushed as Powell Renominated

Gold markets have gotten hit rather hard during the trading session on Monday, reaching all the way down towards the 50 day EMA. Quite frankly, this is a very negative looking candlestick, and one would have to assume that there will be a little bit of follow-through given enough time. One of the factors may have been the nomination of Jerome Powell for Federal Reserve chairman by President Biden, as Jerome Powell has recently began the tapering program. This sets up the possibility of continued US dollar strength, which of course would work against gold if interest rates continued to rise in America. There may have been some concerns as to whether or not he would be reelected, so that part of the gold trade is now dead.

Gold Price Predictions Video 23.11.21

All things been equal, the 200 day EMA sits at the $1800 level, so if we were to break down below there, I think that would be the end of the bullish run for gold. On the other hand, we could turn around and rally and this could end up being a nice short-term buying opportunity, but I do not like buying gold after a candlestick like this. Quite frankly, to get bullish I would need to see at least one day of stabilization before start buying again. Because of this, I will more than likely be on the sidelines over the next 24 hours, waiting for the next clear signal as to where we are going. One thing I do think will be the case for the Tuesday session, quite a bit of choppy behavior.

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