Gold markets have rallied significantly during the trading week to break above the downtrend line quite drastically. Furthermore, we have reached towards the $1800 level, which of course is a large, round, psychologically significant figure, and an area where we have seen selling pressure as well as support in the past. With that being the case, it should not be a huge surprise that we have offered a bit of selling pressure in this area. However, if we can break above the $1900 level it is likely that the market goes looking towards the $2000 level. Above there, then the market could go looking towards the $2100 level.
Gold Price Predictions Video 24.05.21
Underneath, the $1800 level should be a significant support level, not only due to the large, round, psychologically significant figure, and an area that also features the 50 week EMA. If we were to break down below there, then the market goes looking towards the $1700 level after that. Keep in mind that the gold market has been driven higher by a falling US dollar, and it should probably continue to be the main driver.
While this has been a nasty pullback over the last several months, the reality is that we have broken out and we are still very much in an uptrend. From here, I do believe that this incident be in more or less a “buy on the dips” type of market. With that being the case, I do believe that this is a market that you can sell anytime soon. I do believe that gold continues to do quite well in a fairly inflationary environment.
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This article was originally posted on FX Empire
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