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Christopher Lewis
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Gold

Gold markets have rallied significantly during the course of the week to break above the $1900 level, only to turn around and show signs of exhaustion. This is a candlestick that shows that we are positive, but hesitant at the same time. This makes quite a bit of sense considering that there is so much in the way of confusion about inflation and the overall bond yields situation. As long as there is a bit of hesitancy, I think that we could go higher but we obviously have some work to go through.

Gold Price Predictions Video 31.05.21

Underneath, we have the previous downtrend line that should be supportive, so I think we could see buyers in that vicinity in order to take advantage of “value.” On the other hand, if we break above the top of the weekly candlestick, then we could go looking towards the highs again. All things being equal, this is a market that I think is probably going to move counter to the US dollar, and it is worth noting that we broke through a significant downtrend line, so I am leaning to the upside, but I recognize that this is not necessarily going to be a “slam dunk” when it comes to going straight up in the air. I think short-term pullbacks probably offer nice buying opportunities, but you will probably have to dial down to the shorter-term charts in order to find the opportunity to get long.

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That being said, you can also suggests that the 50 week EMA slicing through the $1800 level could be a nice opportunity to find support as well. All things being equal, this is a market that I think continues to find reasons to go higher.

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

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