Gold markets initially fell during the trading session on Tuesday to break down below the 200 day EMA. However, we have turned right back around to show signs of support, as the 200 day EMA of course attracts a certain amount of attention. That being said, the market has also shown signs of support at the $1800 level. That is a large, round, psychologically significant figure that has attracted attention in the past, so ultimately it is not a huge surprise to see that we have seen this happen.
Gold Price Predictions Video 20.01.21
The market of course is reacting to the idea of further stimulus coming out the United States, so I think at this point in time it is obvious that people will be paying close attention to Janet Yellen and her testimony in the Senate, and of course what she may or may not be able to loosen monetary policy even further. Stimulus of course is at the forefront of almost everything that happens these days, which should drive up the value of gold over the longer term.
In the short term, the market is likely to see more of a sideways market, as we are trying to figure out whether or not the US dollar will start falling apart again. Ultimately, the market will probably go looking towards the 50 day EMA, perhaps even towards the $1900 level as well. This being the case, I do believe that the market is likely to find buyers.
For a look at all of today’s economic events, check out our economic calendar.