Gold Price Forecast – Gold Markets Give Up Early Gains

Gold markets have rallied a bit during the course of the trading session on Tuesday to break above the 50 day EMA but have given back quite a bit of the gains. By doing so, we ended up forming a bit of a shooting star shaped candlestick, and it does suggest that we are getting ready to pull back yet again. It is worth noting that the 200 day EMA above is offering significant resistance, and of course we have a major downtrend line involved. The market has formed a bit of a descending triangle that we are paying close attention to, and at this point in time it is probably only a matter of time before we continue to see selling yet again.

Gold Price Predictions Video 20.10.21

The alternate scenario of course is that we break above the $1805 level, which could send this market towards the $1835 level. However, interest rates in the United States continue to rally, based upon the perception of inflation and growth, which is toxic for gold, with growth being the real killer. If we can get yields in the United States picking up and becoming much more of a real return, that will continue to cause a lot of negativity. I do believe that the $1750 level underneath should offer support, but if we were to break down below there then it opens up the possibility of a move down to the $1725 level which is essentially the bottom of the pseudo-triangle that we have been forming for some time.

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