Gold markets have initially pulled back a bit during the course of the trading session on Tuesday to break down below the $1800 level. However, the buyers came back in to push this market to the upside and form a little bit of a hammer shaped candlestick. It is interesting to note that we have seen support underneath in the form of a couple of neutral candlesticks, sitting just above a major support level. The $1750 level is a major support level on the longer-term charts, so we need to pay close attention to it. Quite frankly, if the market were to break down below the $1750 level, it could be somewhat disastrous for gold. The fact that we held out here is a very bullish sign, and quite frankly was needed.
Gold Price Predictions Video 24.02.21
To the upside, if we were to break above the 200 day EMA, then it is possible that the market could go looking towards the $1850 level. Beyond that, the market could open up a move towards the $1950 level above. When you look at the longer-term charts, it appears that there is a bit of a basing pattern that we are trying to continue with, but that means that it is going to be very noisy, even if we do break out to the upside. In general, this is a market that will move based upon the 10 year note yields, which have been all over the place. If they continue to climb, that is negative for gold and vice versa. I think the one thing that we can take away from this is that it is going to be very noisy to say the least.
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