Gold markets have gapped higher during the trading session on Monday to kick off the week strong, pulled back to fill that gap, and then rally again. Ultimately, this is a market that looks as if it is trying to find its way higher, especially as we have seen so many shenanigans being played in the silver market. There is a bit of a “knock on effect” that could send gold higher as well. If we can break above the highs of the Friday candlestick, that would be a broken inverted hammer, a very bullish sign indeed. At that point, I would fully anticipate that the market goes looking towards the $1900 level.
Gold Price Predictions Video 02.02.21
All things being equal, this is a market that remains very choppy and volatile, and it looks as if it is trying to form a bit of a base. This base could lead to a continuation of the uptrend, and it is worth noting that the 200 day EMA underneath has offered a significant amount of support. Because of this, I do think that it is worth looking at short-term pullbacks as potential buying opportunities, due to the fact that the market is so stagnant at the moment.
We are in a longer term uptrend and have been forming a base for quite some time, so I think that is something worth paying attention to. To the downside, I do not have any concerns about this market until we break significantly below the $1800 level, with perhaps the $1750 level being the area where I would consider shorting gold. I would also need to see interest rates in the United States spike again, and of course the US dollar rise.
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