Gold Price Forecast – Gold Markets Rally on Thursday

Gold markets have rallied a bit during the trading session on Thursday to break above the $1775 level, and it looks as if we are going to try to get towards the $1800 level. Above there we have the 200 day EMA at the $1808 level, and of course the 50 day EMA is starting to reach towards it to form a “death cross” as well. In other words, this is an area that I think will offer a lot of significant resistance, especially as there is a major gap just above there. If we do break above the moving averages and go into the gap, we could look towards the $1875 level.

Gold Price Predictions Video 02.07.21

At this point in time, the market still has a lot of pressure on it and of course the $1750 level will come into play as support. That was previous resistance, and therefore I think it makes quite a bit of sense that there will be a lot of “market memory” there. Furthermore, we have seen the market bounce from there, but it looks like we are starting to run into a little bit of exhaustion, as the market is likely to go racing towards the double bottom underneath which is closer to the $1675 level. Breaking below that then opens up the possibility of a move down to the $1500 level.

I think the one thing you can probably count on is a bit of volatility, and therefore it is likely that we would be better served in taking a smaller position before trying to build up as the market prove itself in one direction or another. Pay close attention to the US dollar, because it can work against gold as well if it starts to strengthen.

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