Gold markets have broken down significantly during the course of the trading session on Wednesday as we sliced through the 50 day EMA, and by extension the $1775 level. This is a market that I do believe that given enough time will probably continue to see a lot of noisy behavior, but quite frankly the gold market had been in a downtrend for some time. With that being the case, think the market eventually will have to make up its mind for a longer-term move, but when you look at the downtrend line, you can see that we are forming a bit of a descending triangle.
Gold Price Predictions Video 04.11.21
On the other hand, if we were to turn around a break above the $1810 level, then it opens up the possibility to reach towards the $1835 level. With that being the case, the market would more than likely see a major barrier forming in that area. If we were to break above the $1835 level, and therefore if we can clear that level, it is likely that it would become more of a “buy-and-hold type of market.” If that happens, it is possible that we could go looking towards $2000.
Obviously, we would need to see some type of major shift in the US dollar, something that I do not anticipate seeing anytime soon, at least not to that extreme. If we break down below the $1750 level, then it is likely that we could go looking towards the $1700 level. At this point, it still looks like a “fade the rallies” type of market, just as it has been for a while.
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