Gold markets have gone back and forth during the course of the trading session on Wednesday as we are hanging about the $1900 level. The $1900 level has caused a lot of noise, and as a result of it being a large, round, psychologically significant figure, it is also an area where a lot of people would be hanging about in order to figure out where we go next.
Gold Price Predictions Video 10.06.21
When you look at the longer-term chart, the 50 day EMA is reaching towards the $1850 level, which I believe is your short-term floor. However, with the CPI figures coming out on Thursday, it is very likely that we will see massive movement at one point or another. Most traders are anticipating a lot of inflation out there, so it does make a certain amount of sense that the gold markets have gotten a bit of a bid. However, if CPI ends up being much cooler than anticipated, that could be the reason to send this market much lower.
To the upside, if we can break out from the highs of the previous week, that allows this market to go looking towards the $1950 level, possibly even as high as $2100 over the longer term. That being said, it is going to take a significant amount of time to get up there, and therefore you should have plenty of opportunities to buy on the dips if we do break out so I would not try to anticipate the move, because we do not know with the announcement will be, and it could change the entire attitude of this market. With this being the case though, I do prefer to buy this market when given a chance.
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