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Gold Price Forecast – Gold Markets Look Lively

By:
Christopher Lewis
Published: Nov 12, 2021, 17:17 UTC

The gold markets have initially pulled back during the trading session on Friday but then turned around to show signs of life near the $1850 level. By doing so, gold looks strong for a bigger move.

Gold Price Forecast – Gold Markets Look Lively

In this article:

Gold markets have initially pulled back during the course of the trading session on Friday to reach down towards the $1850 level, which is obviously a large, round, psychologically significant figure. The market has been a bit parabolic at the moment, so it would not surprise me at all to see this market grind sideways in order to work off some of the froth. Furthermore, we need to pay attention to the US dollar, because if it continues to go higher it is likely that we will see more or less a correlation that defies what a lot of people tend to believe. Gold is about inflation and whether or not the bond yields can keep up with real rates.

Gold Price Predictions Video 15.11.21

If we can break above the highs of the last three days, then the market is likely to go looking towards the $1900 level. On the other hand, if we break down below the bottom of the candlestick for the trading session on Friday, then it could open up a move down to the $1835 level. As long as we can stay above there, then I think we are probably going to go for a bigger move.

On the other hand, if we break down below the $1835 level, then I think we have a deeper correction coming. All things being equal, this is a market that does look like it is going to continue going higher, but we are so overextended that it makes a certain amount of sense that we have to take a bit of a breather, offering value for those trying to take advantage of this move.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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