Gold Price Forecast – Gold Markets Give Up Early Gains to Show Signs of Weakness

Gold markets have initially tried to rally during the course of the trading session on Wednesday but then gave back the gains near the 50 day EMA yet again, as we ended up forming a shooting star for the trading session on Tuesday and now are kicking off more selling pressure on Wednesday. The weekly candlestick from last week of course was a major hammer, but ultimately the market has recently just formed a “death cross”, something that could bring in more sellers.

Gold Price Predictions Video 19.08.21

The US dollar has been strengthening for some time, and it does make a certain amount of sense that we would continue to see gold take a bit of a hit, especially as money starts to go into the bond market in a bit of the fear trade. There is a lot of talk out there about the Federal Reserve having to taper by the end of the year, and that of course will work against the value of gold because eventually that should send yields much higher. In other words, it becomes much more cost-effective to hold a piece of paper than it does to pay for storage of large amounts of gold, which is a major influence on this market.

On the other hand, if we were to take out the 200 day EMA above, then the market is likely to go looking towards the $1835 level, an area that has been significant resistance previously. Breaking that of course could change the entire trend, but right now it looks as if we at the very least are going to get a little bit of a pullback.

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