Gold markets initially tried to rally during the trading session on Wednesday but found enough resistance at the 50 day EMA to turn things around and form a bit of a shooting star. At this point, if the market were to break back down, we will probably go looking towards the $1800 level. On the other hand, if we can break above the top of the candlestick, then it is likely that the market could go looking towards the $1875 level, followed by the $1900 level after that. Longer-term, I think that we would go looking towards $1960 level due to the fact that the market has sold off from there couple of times.
Gold Price Predictions Video 11.02.21
The gold markets are struggling with interest rates rising in the United States, and therefore people will put money into treasuries instead of gold for safety due to the fact that there is yield in those notes instead of the cost of holding onto gold. Ultimately, if we turn around a break down below the $1750 level, that could be toxic for gold and could send this market much lower. In general, I believe that this market continues to see volatility, but we are still possibly trying to form a longer-term basing pattern.
What gold desperately needs in order to continue rising is inflation, and quite frankly most of the numbers of people use to measure inflation simply are not pointing in that direction. Yes, someday we will have massive inflation but right now it is obvious that we do not and therefore gold continues to struggle a bit. If the US dollar gets hammered, that might help lift gold, and at this point that is exactly what you need.
For a look at all of today’s economic events, check out our economic calendar.