Christopher Lewis
Add to Bookmarks

Gold markets have initially pulled back during the trading session on Friday, but then rallied to reach towards the downtrend line. That being said, if we can break above the $1850 level, then it is likely that we will continue to go much higher, perhaps reaching towards the $1950 level. However, we need to see a daily close above $1850 for me to put significant money into the market. In fact, I plan on being very patient because it is obvious to me that if we do get a move to the upside, it could be rather big.

Gold Price Predictions Video 17.05.21

On the other hand, we could pull back yet again as the market continues to see a lot of noisy behavior in this general vicinity, with the $1800 level and the 200 day EMA offering a significant amount of support as well. With this being the case, I like the idea of buying the breakout but until then I will simply be on the sidelines. All things been equal, this is a market that will eventually take off and go much higher if we continue to see worries about inflation.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Furthermore, the US dollar has deteriorated enough to suggest that the gold markets could rally due to that. On the other hand, if we break down below the 200 and the 50 day EMA, it is likely that we could go looking towards the double bottom near the $1700 level. With this being the case, I think we need to simply wait for some type of impulsive candlestick to take advantage of what should be a significant momentum.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker