Gold Price Forecast – Gold Markets Pullback From 200 Day EMA

Gold markets have fallen a bit during the course of the trading session on Wednesday to show signs of hesitation near the 200 day EMA. This is where the massive selling had started, and it is worth noting that we have pulled back from here again. If we break down below the Monday candlestick, I think that opens up a move down towards the $1750 level. That is an area that has been important more than once, and therefore it makes a nice target. If we can break down below the $1750 level, gold will almost certainly test the $1680 level yet again.

Gold Price Predictions Video 26.08.21

This all comes down to the idea of tapering coming out of the Jackson Hole Symposium, and whether or not Chairman Powell gives the market any idea that tapering could come. If tapering of bond purchases out of the Federal Reserve is in fact what is going to happen between now and the end of the year, then it is likely that interest rates will rise, making holding bonds much more attractive than gold as you do not have to pay for storage.

On the other hand, if he does suggest that tapering is still years away, we could very well break above that “evening Star” that formed during the Tuesday session, perhaps opening up a move towards $1830 level, and then after that a move towards the $1910 level. Either way, this is a market that I think continues to be very choppy and will move upon the latest headline or worse yet, rumor coming out of the meeting. Be aware of the fact that a lot of rumors come out to manipulate the market during these situations, so be cautious about your position size.

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