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Christopher Lewis
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Gold

Gold markets have rallied a bit during the course of the trading session on Monday, to reach towards the $1800 level. It also has tested the 200 day EMA, so it does make quite a bit of sense that we would see a lot of noise in general. The 200 day EMA does have a habit of being closely follow, so as long as that is going to be the case, I think what we are looking at is a scenario where the market is trying to determine whether or not we can continue to see bullish pressure.

Gold Price Predictions Video 04.05.21

If we can get a daily close above the $1800 level, it is very likely that we will continue to see the market goes looking towards the $1850 level. Furthermore, you need to pay close attention to the US dollar, because if it starts to fall, that could also help this market. For what it is worth, silver has broken out, but it should also be noted that silver also has the industrial influence attached to it, so it is possible that it could break out and gold still sits below resistance.

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If we pull back, I believe that the area around the 50 day EMA should offer support, and therefore I think it would only be a matter of time before buyers would reenter. However, if we break down below the $1750 level that would be a very negative sign and could send this market lower. Either way, I think it is only a matter of time before we have to make a bigger move but clearly Monday as a sign that the buyers are becoming a little bit more aggressive, and that the overall attitude may be changing.

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

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