Gold Price Forecast – Gold Markets Get Hammered Again
Gold markets got absolutely hammered during the trading session on Friday, slicing through the 50 day EMA, after breaking through the previous downtrend line. At this point time, the market is likely to continue to go lower, perhaps reaching towards the 200 day EMA. One thing is for sure, gold suddenly looks like it is being threatened, especially as interest rates in the United States are rising. That does cause some issues, and therefore we are seen that play out in the precious metal sector in general. All things being equal, this is a market that I think will continue to be very shaky in the short term, and we could see an attempt to rush into the US dollar, at least for the short term.
Gold Price Predictions Video 11.01.21
Underneath, the 200 day EMA could offer a bit of support, especially just above the $1800 level, an area that has been important more than once. Giving way at the $1800 level and breaking down below would be even worse, as the market then would have cleared the large, round, psychologically significant figure that had originally supported. I would be very cautious about getting involved in gold right now, but longer-term I still think that it goes higher given enough time. This is why I have been getting involved in very small positions, and not risking that much when it comes to position sizing. I believe that we will continue to struggle to find stability in the short term, so the best trade might be to simply sit on the sidelines to let things calm down for a day or two before getting involved.
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