Advertisement
Advertisement

Gold Price Forecast – Gold Markets Ready to Pull Back

By:
Christopher Lewis
Published: May 18, 2021, 16:15 UTC

Gold markets initially shot higher during the trading session on Tuesday but gave back the gains rather quickly in order to show signs of hesitancy.

Gold Price Forecast – Gold Markets Ready to Pull Back

In this article:

Gold markets have initially tried to rally during the trading session on Tuesday, but then gave back the strength to show signs of weakness. That being said, I think it is more or less going to be thought of as exhaustion before it is all said and done, and the $1850 level underneath would be supported, as it was previous resistance multiple times. We had recently broken above the top of the downtrend line, so therefore it is likely that there will be some type of retest of this area.

Gold Price Predictions Video 19.05.21

Ultimately, if we can break above the top of the candlestick for the trading session on Tuesday, then it opens up that move towards the $1950 level, which of course is a major area of resistance that we had seen multiple times in the past. I do think that gold could very well turn around, but you will have to pay attention to the interest rates in America, and whether or not they are rising or falling. If they continue to drift a little bit lower, that will help gold, especially if the US dollar continues to get hammered as a result.

If we were to turn around a break down below the downtrend line, then I think the market is very likely to go looking towards the $1800 level or so, especially where the 200 day EMA is coming into play. The 50 day EMA is getting ready to break above there, as it would kick off the “golden cross” that people are quick to pay attention to from a longer-term standpoint as it is so bullish. Nonetheless, I like gold, but I think we need to pull back just a bit.

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