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Gold Weekly Price Forecast – Gold Markets Bounce From 50 Week EMA

By:
Christopher Lewis
Published: Feb 5, 2021, 19:20 UTC

Gold markets initially fell during most of the week, but the jobs number on Friday was weak enough to have people looking to dump the US dollar.

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Gold markets have fallen quite a bit during the course of the week, slicing through the 50 week EMA and reaching as low as $1786. All of that being said, this is an area that I think shows promise for support, but this has been a very ugly week. I think we need to pay attention to the US dollar and of course the interest rates coming out of the United States. If interest rates in the United States continue to climb, that will be very bad for gold, as it tends to move in the opposite direction.

Gold Price Predictions Video 08.02.21

That being said, the support level that had to hold did, so it will be interesting to see how the next couple of weeks play out. If the gold market breaks down below the $1750 level, I anticipate that it could be rather ugly. On the other hand, if we turn around in recapture the $1850 level, one will have to think that it would be somewhat encouraging. In the meantime, I anticipate that we are going to see a lot of noise and therefore it is difficult to do anything other than to “buy-and-hold” with a small position if you are going to get involved. Otherwise, simply waiting for an impulsive move in one direction or the other might be the best way going, because there are so many moving pieces at the moment around the world. Not only do you have stimulus, but you have the questions as to whether or not the vaccine can be rolled out quick enough to continue global growth?

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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