Gold Weekly Price Forecast – Gold Markets Push Through a Trendline
Gold markets have rallied significantly during the course of the week to break through a downtrend line, breaking above the 50 week EMA. By doing so, it showed extreme strength, but on Friday we had a massive selloff. At this point in time, it looks as if we are trying to figure out whether or not there is any follow-through to this breakout, and it must be said that this market is paying close attention to the 10 year yields. As they rise and fall, that could have a major influence on what happens with the gold market next.
Gold Price Predictions Video 25.10.21
You should also pay attention to the US dollar, which by extension the commodity is priced in. If the US dollar strengthens, then it is likely that it will work against the value of gold as well. I do not like the idea of trying to get to granular with this position, but if we were to break above the $1835 level, then I would be much more apt to be a buyer and hold on to a position. In the meantime, I suspect that we will see a lot of churn in this general vicinity, thereby causing noisy behavior at best.
From a longer-term standpoint, gold markets seem to be supported heavily at the $1700 level, and therefore I think that is your “floor in the market” for those looking for a multi-month type of position. Although this past week has been rather noisy, at the end of the day we are simply hanging about in the same region. I suspect more consolidation is probably likely than not.
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