Gold Price Forecast – Gold Markets Give Up Early Gains

Gold markets have rallied rather significantly during the course of the trading session on Friday to reach towards the 50 day EMA. However, we have turned around to form a massive shooting star, which of course is a very negative turn of events. Quite frankly, with the jobs number missing the way it has, you would expect that the gold market would have shot higher. The fact that it has not been able to hang on to those gains is a bit of a “heads up” on the possibility of a serious move lower.

Gold Price Predictions Video 11.10.21

If we break down below the $1740 level, it is likely that we go looking towards the $1725 level. Breaking down below that level opens up the possibility of a move down to the $1680 level. That is an area that has been massive support multiple times and it certainly looks as if we are going to try to reach down towards that area for the longer-term move, unless of course we were to somehow turn around and take out the top of the candlestick we formed on Friday. If that were to happen, it is likely that the market goes looking towards the 200 day EMA, which sits just below the $1800 level.

Nonetheless, I think this is a market that continues to be very noisy and therefore I think you need to be very cautious about your position size in this type of environment. With that being the case, the market is likely one that you have to start with a very small position, and then perhaps add as it works out in your favor.

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