Gold Price Forecast – Gold Markets Stable on MondayGold markets went back a little bit on Monday, but we clearly are still sitting in an area that is trying to figure out whether or not it is a floor
Gold markets have done very little during the trading session on Monday, after rallying quite heavily during the Thursday and Friday sessions, so this point it comes down to whether or not we are trying to stabilize, or if we are already running out of steam? With that being said, it is worth noting that the gold market has formed a little bit of a “micro double bottom”, and therefore I think it is very possible that the buyers are trying to make a stand here. Further compounding the idea of supporting this area is the fact that the $1700 level sits here, so that will attract a lot of attention as well.
Gold Price Predictions Video 06.04.21
The $1700 level previously had been extreme resistance, so it now looks as if it is trying to be significant support. A breakdown below the lows of the last couple of weeks could open up further selling, and I think at that point we would probably go looking towards the $1500 level. That of course is a large, round, psychologically significant figure that will attract a lot of headline attention, and therefore I think that there would probably be value hunters in that area as well, if for no other reason than there are a certain amount of people out there that you can quote buy on the dip” when it comes to gold anyway.
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To the upside, if we can break above the 50 day EMA, then the market may go looking towards the $1800 level. The $1800 level would be resistance as well, as it features the 200 day EMA. Pay close attention to yields in America, because if they continue to climb, that will be bad for gold.
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