Gold Price Forecast – Gold Markets Get Hammered After Initial Rally

Gold markets have rallied to kick off the trading session on Wednesday to reach the top of the consolidation area that we have been in for a while. The $1830 level has been very resistive, and this has come to pass yet again as we got hammered due to mixed economic data coming out the United States. The resulting candlestick is very ugly, and at this point in time we are simply hovering around the 50 day EMA as well as the 200 day EMA.

Gold Price Predictions Video 05.08.21

On the other hand, if the market was to break above the top of the shooting star for the trading session, then it is likely that the market could go looking towards the $1860 level, which is where the gap ends. A lot of this will come down to the US dollar, as it does have a strong negative correlation to this market, and as a result I pay close attention to the US Dollar Index.

To the downside, the $1790 level would be support based upon what we have seen recently and could make a target if we break down a bit. If we were to break down below there, then the market is likely to go down towards the $1750 level. That is an area that of course has been support and therefore would make a target. If we break down below there, then the market is likely to go down to the $1680 level where the massive double bottom is sitting. In general, think we get a little bit of choppy behavior between now and Friday.

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