Gold Price Forecast – Gold Markets Reach Towards Downtrend LineThe gold markets have shown themselves to be resilient after initially pulling back during the day. In fact, we find ourselves testing a significant downtrend line that could open up a huge move higher.
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.
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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.
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