Advertisement
Advertisement

Gold Price Forecast – Gold Markets Pullback From Trendline Again

By:
Christopher Lewis
Published: May 12, 2021, 15:55 UTC

Gold markets fell during the trading session on Wednesday as the downtrend line continues to hold very resiliently. The $1850 level above there is also an area of interest.

Gold

In this article:

Gold markets have pulled back during the trading session on Wednesday as the downtrend line continues to show negativity. The $1850 level above is a large, round, psychologically significant figure that has attracted attention more than once. Because of this, the market is very likely to continue struggling in the short term and could pull back towards the 200 day EMA underneath at the $1793 level. If we were to break down below the 200 day EMA it could open up a bigger move to the downside but right now it does not look likely to happen quite yet.

Gold Price Predictions Video 13.05.21

If we can break above the $1850 level, then it is likely that we could go looking towards the $1950 level. That would be a major trendline break out and we should continue to go higher. The hammer from the previous session is still holding as support so far, so it does look like we could probably continue to go back and forth in a tight range before we can make a bigger move.

Keep in mind that the US dollar has a major influence on where gold goes next, as it is quite often negatively correlated to the market. All things been equal, I do think that we are looking at a potential break out, but at this point in time it seems as if we have a lot of work to do. Recently we have formed a major double bottom and have broken through a couple of major EMA indicators, so that does show quite a bit of a searing pressure to the upside. At this point, I favor the upside, but I still need to see this market break out first.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement