Gold Price Forecast – Gold Markets Pull Back Ever so Slightly
Gold markets initially tried to rally during the trading session on Monday but gave back the gains near $1825, to show signs of hesitation. With this being the jobs report week, it should not be overly surprising that the US dollar might be all over the place, and by extension, we would probably see gold markets get thrown around in turn. The $1835 level above is significant resistance, so as long as we stay below there, I would think that a pullback is most certainly possible.
Gold Price Predictions Video 31.08.21
You should also keep in mind that the 50 day EMA and the 200 day EMA are both sitting at $1800 and going sideways. That typically means that the market is trying to set itself up for some type of move, but the directionality is not quite known yet. It is worth noting that we have wiped out a lot of the talk from the Federal Reserve about tapering, and that is something worth paying attention to. Perhaps we are just simply at “fair value” at the moment, and thereby will probably grind most of the week in a sideways back-and-forth type of effort.
To the downside, if we were to break down below the $1775 level, it could open up a bigger move to the downside, just as a move above the $1835 level would send this market much higher. At that juncture, I would anticipate that we would go looking towards the gap above at the $1865 level, and then possibly as high as $1900, right along with the US dollar that was falling. That being said, we will probably answer that question on Friday assuming that the jobs number is anything out of the ordinary, as traders all over the world are starting to focus on whether or not we can recover from the coronavirus. Either way, gold tends to be very erratic so if keep your position size somewhat small.
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