Gold markets have broken higher during the course of the trading session on Thursday as we have cleared the 200 day EMA and the $1800 level. At this point, the market is likely to continue going higher, perhaps reaching towards the $1850 level, and then after that the $1950 level. This of course is a market that has recently formed a bit of a “double bottom”, and that suggests that it has much further to go. It is interesting, because gold has disappeared from the inflation argument until recently, but now it appears that the traders finally starting to kick in.
Gold Price Predictions Video 07.05.21
To the downside, I see the 50 day EMA as offering support, and most certainly the $1750 level will as well. It is not until we break down below there that I would be concerned, but after the action that we have seen during the day on Thursday, it is very likely that the buyers will continue to push to the upside. The size of the candlestick is somewhat impressive, and therefore it looks like there is serious conviction in this market. If the US dollar continues to fall, that should continue to lift gold in general, and therefore I think that we have a “buy on the dips” type of mentality from short-term traders. Ultimately, this will be a very noisy move to the upside, but it certainly looks as if we have made major changes in attitude during the day, as we have been building up pressure for some time. I have no interest in shorting this market until we close below the $1750 level, something that does not look as likely now.
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