Gold Weekly Price Forecast – Gold Building Pressure to The Upside
Gold markets have initially pulled back during the course of the week but then turned around to rally rather significantly on Friday as the jobs number in America was completely disastrous. By missing the estimates by more than 500,000, this suggests that the Federal Reserve will stays dovish as far as the eye can see. That is essentially their main stance anyways, so at this point in time it should not be a huge surprise that the market reads it as such.
Gold Price Predictions Video 06.09.21
The $1835 level continues to be an area that is very crucial, and if we can break above there is likely that we go looking towards in $1900 level. That being said, any pullback will probably be bought into unless something changes. There is the possibility that money gets diverted to the bond market in America, but ultimately this will come down to the US dollar more than anything else. If we break down below the 50 week EMA, then it is likely that we go looking to much lower levels, probably the $1775 level. Underneath there, then we could go looking towards the $1680 level.
This is all about the US dollar right now, so keep in mind that you need to have an eye on the US Dollar Index get an idea as to where we could go next. Because of this, I think it is only a matter of time before we get that negative correlation influencing where we go next. I expect to see a lot of volatility over the last couple of weeks, so please keep that in mind and keep your position size reasonable.
For a look at all of today’s economic events, check out our economic calendar.