Gold Price Forecast – Gold Markets Pierce 50 Day EMAGold markets initially rally on Friday, piercing the 50 day EMA. However, we have given back those gains to show a less than enthusiastic candlestick.
Gold markets have initially rally during the trading session on Friday to pierce the 50 day EMA but have pulled back a bit to show a less than enthusiastic candlestick by the end of the day. Nonetheless, this is a simple continuation of what we have seen for some time, as the market dances between the 200 day EMA on the bottom and the 50 day EMA on the top. Longer-term, I do believe that gold goes looking towards the $1900 level, which of course is an area that will be psychologically important as well as structurally in the past.
Gold Price Predictions Video 01.02.21
To the downside, the 200 day EMA at the $1822 level should continue to be important as well, just as the $1800 level should be. I think given enough time, we will continue to go higher based upon the US dollar losing strength, and of course the fact that there are central banks around the world flooding the market with liquidity, thereby having people run into gold in a bid to protect their wealth. We have been forming a larger basing pattern for some time, and I think this is simply a sign that eventually we will find reasons to go much higher. I have no interest in shorting this market, unless of course the US dollar suddenly takes off to the upside, something that does not look very likely to happen right now but could be a factor down the road if we get yields in America rising too rapidly. That does tend to have money looking towards the greenback, but right now that still is not a major issue.
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