Gold Price Forecast – Gold Markets Have Volatile Opening for the Week

This trading session on Monday has without a doubt been a “risk off session”, due to the fact that we have not only seen gold pick up quite a bit of strength, but we have also seen bonds pick up strength. In other words, people are trying to grab everything they can that could preserve wealth, and of course that does help gold. The 200 day EMA is flat, and we did pierce it at one point in time, but we have turned right back around to show a bit of resiliency. Just above here, we have the 50 day EMA as well, so I think we have a lot of confusion just waiting to happen.

Gold Price Predictions Video 20.07.21

If we can break above the highs from the trading session on Friday, that should open up a move towards the $1860 level, which is the top of the massive gap that has yet to be filled. On the other hand, if we break down below the lows of the session on Monday, it is very likely that we plummet from there, perhaps reaching down towards the $1750 level. That level has been support previously, as well as previous resistance. Breaking down below that level opens up a significant move to the downside, perhaps all the way down to the double bottom which is near the $1680 level.

The market will continue to be very volatile, but I still am a bit cautious about trying to get long of gold, simply because there is such a huge drive into the bond market and of course the US dollar. It is not that they cannot all go up at the same time, it is just that it is difficult to make that happen.

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