Gold Price Forecast – Gold Markets Give Up Early Gains

Gold markets have been bullish during the course of the trading session on Wednesday but have also struggled at the 200 day EMA. This is a bit of a repeat from the Tuesday session, as we continue to show exhaustion just above. At this point, a lot of it is going to come down to the bond market, and whether or not we continue to see money flow into it. As we do, then it typically works against the value of gold in general.

Gold Price Predictions Video 08.07.21

If we can break above the 50 day EMA, which is substantively breaking above the top of the Tuesday candlestick, then the market is likely to go looking towards the $1860 level. That is the top of the gap, and I think it will eventually get filled. Having said that, we also have seen a lot of selling every time we have tried to rally. The $1750 level underneath is a significant support level, as it was a significant resistance level previously. If we were to break down below the $1750 level, then it opens up the possibility of testing the double bottom near the $1680 level. If we were to break down below there, then it is very likely that the market could go looking towards the $1500 level.

Pay close attention to the US dollar, because it does typically have a bit of a negative correlation to the gold market, and therefore it is likely that we going to see that correlation come into play given enough time as well, especially if that move into the bond market continues that we have seen over the last several days.

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