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Gold Price Forecast – Gold Markets Recover After Initial Selling Pressure

By:
Christopher Lewis
Published: Dec 30, 2021, 16:34 UTC

Gold markets initially fell during the trading session on Thursday to dip below the 50 and the 200 day EMA indicators. However, we have seen the market turned back around to show signs of life again, and therefore it looks like we are still trying to stabilize.

Gold Price Forecast – Gold Markets Recover After Initial Selling Pressure

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Gold markets fell initially during the trading session on Thursday to pierce the 50 day and the 200 day EMA indicators, but we have turned around to show signs of life again. This suggests that the market is still trying to find stabilization going forward, which makes sense considering we are heading into the new year holiday. With that being the case, it is very likely that we will do nothing and kill time between now and next week when people start to put risk back on.

Gold Price Predictions Video 31.12.21

One thing is for sure, despite the fact that gold has been pushed against so hard over the last several sessions, it has been somewhat resilient so be interesting to see how this all plays out in the end. I would be very cautious about getting too big in this market in the short term, because we have to keep in mind that the first couple days of the year will be very illiquid as well. Once we get the jobs number out of the way on Friday, then you start to talk about normalcy when it comes to the markets.

Gold of course has a negative correlation to the US dollar most of the time, so you have to pay attention to the US Dollar Index, and what that might be doing at the moment. Furthermore, the interest rate differential between nominal and real rates in the US bond market should be paid close attention to as well, because if you can earn a return risk free with paper, that always tends to work against the value of gold itself.

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.

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