Gold Price Forecast – Gold Markets Find Support at 200 Day EMA
Gold markets have fallen significantly during the trading session on Monday to kick off the week, but also found a significant amount of support near the $1800 level. By doing so, we ended up turning around to form a nice-looking hammer. The hammer of course is a bullish sign, so if we can break above the top of that we will probably go looking towards the $1860 level which is where we had recently been going back and forth. All things being equal, this is an area that should continue to offer a little bit of support, not only due to the large, round, psychologically significant figure, but the fact that we had bounced from this area previously as well.
Gold Price Predictions Video 19.01.21
If we did break down below the $1800 level, then we could go looking towards the $1750 level underneath which of course is the bottom of the most significant pullback over the last couple of months. To the upside, I think that we could go looking towards the $1960 level, but it is going to be very choppy between here and there and it of course will have a lot to do with what the US dollar does, so if the US dollar continues to weaken then we may see gold rally significantly. Obviously, the exact opposite can happen as well unless of course it is a major rush towards safety because both can rise in that particular type of scenario. All things being equal, we are probably going to be very choppy more than anything else. Ultimately, this is a market that is going to continue to be noisy regardless.
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This article was originally posted on FX Empire
