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Gold Price Forecast – Gold Markets Recover After Recent Pullback

By:
Christopher Lewis
Published: May 13, 2021, 15:52 UTC

Gold markets have initially fallen during the trading session again on Thursday but then turned around to show signs of stability.

Comex Gold

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Gold markets initially fell during the trading session on Thursday as we continue to see a little bit of a selloff through the Asian and European session. However, it looks as if the $1800 level is trying to offer a bit of support. By bouncing in the manner that we have, it does suggest that we may make another attempt on the trendline up above, and perhaps the $1850 level, which for me is a major resistance barrier. If we can break above there on a daily close, then it is likely that we could go looking towards the $1950 level.

Gold Price Predictions Video 14.05.21

To the downside, the 200 day EMA remains supportive from what I can see, so I think that there will be a bit of natural buying in that general vicinity, especially as it is just below the previously mentioned $1800 level. The 50 day EMA is starting to reach towards that area as well, so that is yet another reason to think that perhaps support will come back into play.

It is not until we break above the $1850 level on a daily close that I would get long, so I am going to have to be very patient in this general vicinity. As far as selling is concerned, I would like to see some type of break down below the two moving averages in order to aim for the double bottom just below the $1700 level. You should also keep an eye on interest rates and how quickly they are moving, because if they speed up in a spike higher, that could work against gold as it did for a couple of months previously.

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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