Gold Price Forecast – Gold Markets Slam Into 200 Day EMA
Gold markets rallied significantly during the trading session on Monday as we have broken above the 50 day EMA, to reach towards the 200 day EMA. The 200 day EMA sits at the $1804 level, an area that of course has been rather important. Because of this, I think we are going to struggle a little bit to go much higher, especially as we have obvious selling pressure just above. Furthermore, we have the Jackson Hole meeting this week that will come into the picture, and therefore a lot of people will be paying attention to the statement coming out of there as to whether or not the Federal Reserve is likely to start tapering.
Gold Price Predictions Video 24.08.21
To the downside, if we were to break down below the lows of last week, I think that opens up the possibility of a move down to the $1750 level, an area that we have visited multiple times in the past. Breaking down below that level then opens up a move to that massive selloff down to the $1680 level underneath. Nonetheless, this is a market that I think given enough time will see a lot of volatility. If we break out to the upside, it is once we close above the $1830 level that I believe gold goes much higher and starts to become more of a “buy-and-hold” type of situation.
That being said, the market will be paying close attention to tapering talk, and of course the US dollar itself. The size of the candlestick is rather important, and certainly shows quite a bit of bullish momentum possibly building up in this market. Ultimately, this is a market that I think will continue to see a close negative correlation to the greenback.
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