FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
136,426,431Confirmed
2,945,568Deaths
109,686,244Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Gold

Gold markets initially tried to rally during the trading session on Friday but gave back the gains as we continue to see a lot of noise in general, as the bond markets are all over the place. That of course does have an effect on the gold markets, due to the fact that both are considered to be a safety trade at points in time. That being said, from a technical analysis standpoint we are still very much in the consolidation area that we have been in, with the 200 day EMA underneath offering a certain amount of support. Furthermore, we have the $1800 level that could cause support as well, as the US dollar has recovered a bit during the trading session.

Gold Price Predictions Video 18.01.21

As interest rates rise in the United States due to ten-year note selling, this can make the US dollar somewhat attractive due to the fact that the interest rates offered in the bond markets can be a much more reliable investment than something like gold. That being said, there are still a lot of concerns out there when it comes to the idea of the global economy, and therefore we could get a bit of a “safety trade” piling into this market. To the upside I see the 50 day EMA as still offering resistance, just as the $1900 level above will. After that, then we would go looking towards the $1960 level. As far as selling is concerned, I still do not really have much of an argument for doing so quite yet, as I see a lot of support just below the $1800 level.

Advertisement
Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

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

Advertisement
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

  • Your capital is at risk