Gold Price Forecast – Gold Markets Show HesitationGold markets have gone back and forth during the trading session again on Tuesday as we continue to see a lot of choppy behavior.
Gold markets have gone back and forth during the course of the trading session on Tuesday as we are simply squeezing between the 50 day EMA underneath and the 200 day EMA above. This continues to create a bit of a “push/pull” type of dynamic, and therefore it is not a huge surprise that we are sitting at roughly unchanged as I record this. The $1800 level of course is sitting just above the 200 day EMA as well, and therefore I think it shows a significant amount of resistance going forward.
Gold Price Predictions Video 28.04.21
The market also sees quite a bit of support at the $1725 level, which of course is an area where we have shot straight up in the air. If we were to break down below that massive candlestick, then it is likely that the market will go looking towards the double bottom underneath that has attracted so much attention. Breaking below there then has a massive possibility of moving down towards the $1500 level. All things being equal, this is a market that does look like it is trying to form a little bit of a base, but unless bond yields start to sell off even further, it is very unlikely that gold will be able to take off.
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After all, if you can collect a guaranteed yield by clipping coupons in the bond market, it is a much better investment than trying to pay for storage when it comes to gold, to fight inflation that is. As long as there is a “real yield” coming out of the bond market, then it is likely that gold will continue to get hammered.
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