Gold Price Forecast – Gold Reaching Down Towards Massive Support
Gold markets broke down a bit during the trading session yet again on Thursday as we continue to look at the $1700 level as potential support. If we can break down below there, then I think the gold market has further to go, perhaps dropping all the way down to the $1500 level before it is all said and done. Keep an eye on 10 year yields, because if they do continue to rise, it is very likely that the market will sell gold as it is essentially kryptonite for the yellow metal.
Gold Price Predictions Video 05.03.21
Looking at this chart, it is obvious that there is a bit of resistance at the $1750 level, so I do think that if we were to turn around a break above there, we could see this market go looking towards the $1800 level rather quickly. For what it is worth, the 50 day EMA is getting ready to cross below the 200 day EMA, and that of course is what is known as the “death cross”, which is a negative sign and a sell signal for longer-term traders. I do not put much credence into it, but it does cause some headlines and therefore people will be noticing it. That being said, I think that the next couple of days will be crucial, and as Jerome Powell has a speech that he is giving, that could have a major effect on the treasury markets, which of course can have the coincidental knock on effect in this market. At this point, the market is likely to make some type of bigger decision, but it may have to wait until after the jobs number on Friday as well.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
