Gold Price Forecast – Gold Markets Pullback Again as 50 day EMA Offers ResistanceGold markets have fallen a bit during the trading session again on Monday, as we continue to see the 50 day EMA offer resistance.
Gold markets have pulled back a bit during the trading session on Monday, as we have seen the 50 day EMA offer resistance again, but more importantly, we have seen the yields in America rise again. After all, rising yields in the bond market work against the value of gold because you can simply clip coupons instead of paying for storage of gold. When you are talking about large amounts, that could make a huge difference to your profit, and therefore that is why this tends to be the case.
Gold Price Predictions Video 13.04.21
Underneath, the $1700 level probably offers support again, but if we break down below there then it is likely that we go looking towards the lows, followed by the break down all the way down to the $1500 level, possibly even as low as the $1300 level. All of this is going to come down to what is going on in the bond market, so that is most certainly worth paying attention to but at the end of the day gold is in a downtrend and testing a major support level. If we break down below that support level, things could get rather ugly, perhaps opening up a bigger shot lower. That being said, I think at this point in time it is difficult to be a buyer, but if we do make a break above the 50 day EMA on a daily close, at that point in time I think what we would have is a potential change in attitude and a run towards the 200 day EMA which is just below the $1800 level. One thing I think you can count on is choppiness.
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