2. Feb, 2021

Gold Price Forecast – Gold Markets Test 50 Day EMA

Gold markets have gapped higher to kick off the trading session, pulled back to fill that gap, and then turned around to hang around the 50 day EMA again.

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.

 

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.

 

(Feb 01, 2021 05:33 PM GMT)