Comex Gold

Gold Price Forecast – Gold Markets Continue to Build Base

Gold markets have gapped a little bit higher during the course of the trading session on Monday, and then rallied towards the $1795 level. Just above, the $1800 level should be a nice buying opportunity, giving gold a realistic chance of reaching towards the top of the gap, meaning that gold could go to the $1860 level. It should be noted that the 200 day EMA is in that neighborhood, but quite frankly it is flat, and I think at this point in time we have sliced through enough times recently that it is almost a nonevent.

Gold Price Predictions Video 06.07.21

To the downside, the market should see plenty of support at the $1750 level, which was a previous resistance barrier. If we break down below there, then it is likely that we could go looking towards the $1675 level, which was the scene of a major double bottom. Breaking down below that could then be a major break apart to go looking towards the $1500 level. I believe that gold is almost certainly at a significant crossroads at the moment, but I think at this point in time I think we are probably going to see a lot of choppy behavior more than anything else, and as a result I would be very cautious about my position size.

Nonetheless, if we can break above the bottom of the gap, then I think I would become a little bit more aggressive with my position size, at least until we got to the top of that gap. If we can break above it, that could open up the possibility of a move towards the $1900 level. Breaking above there then opens up a huge move to the upside.

For a look at all of today’s economic events, check out our economic calendar.