Gold Price Forecast – Gold Markets Get Knocked Around

Gold markets have gone back and forth during the course of the trading session on Tuesday as the markets will move back and forth due to the interest rates coming out of America. Furthermore, we have the jobs number coming out on Friday and it certainly makes quite a bit of sense that we would see a bit of hesitation to make a bigger move, as the jobs number will give us an idea as to what could happen with the Federal Reserve. They are starting to talk about tapering, and ultimately this could push interest rates higher in order to make gold a bit less attractive. The market is currently sitting at a significant technical crossroads, and that is what we will use to make the next trade.

Gold Price Predictions Video 01.09.21

To the upside, the $1835 level has been significant resistance, and I think a break above there would be extraordinarily bullish. On the other hand, if we were to turn around a break down below the 50 day EMA, then I would anticipate that the market would challenge $1775 underneath, possibly opening up a move down to the $1750 level. As per usual, you need to keep an eye on the US dollar because the typical negative correlation that you see. Furthermore, if interest rates rise it makes the US dollar more attractive and beyond that you also have the idea that it is cheaper to hold paper than it is to pay storage fees for large amounts of gold. Keep in mind that it is not retail traders to push this market, it is larger institutions of course.

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