Gold Price Forecast – Gold Markets Looking Upwards

Gold markets have rallied a bit during the trading session on Tuesday as we are paying close attention to the US dollar. Ultimately, the FOMC question and answer portion of the meeting will have to get out of the way before we can have the “green light” for the US dollar to continue falling and push the gold market higher. At this point in time, the market could very well go towards the $1800 level. The 50 day EMA sits just below the $1800 level, and then of course the 200 day EMA sits there as well.

Gold Price Predictions Video 17.03.21

It is worth noting that the $1700 level was previous resistance and now has offered support. Furthermore, the 61.8% Fibonacci retracement level sits there as well, so a certain amount of technical trading will probably happen there before it is all said and done. At this point though, it is all about whether or not the Federal Reserve is going to step in and do something about the spike in yields, which is causing major problems in a lot of risk appetite based assets. As yields spike in America, the US dollar strengthens, and therefore makes gold lose value as it is priced in that currency.

The question at this point in time is whether or not we have just made a floor? It certainly looks as if it could be a significant bottom, but we will not know until we get through the Wednesday session so at the very least caution is necessary. Watch your position size, but we should have a bigger move in gold sooner rather than later, perhaps about 3:00 PM Wednesday Eastern Standard Time.

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