Gold markets initially pulled back during the trading session on Wednesday to reach down towards the 50 day EMA, before bouncing a bit and forming a bit of a hammer. At this point, we are still stuck between the 50 day EMA and the 200 day EMA indicators, so therefore not much has changed over the last couple of days. We are simply consolidating, trying to figure out where our next move is.
Gold Price Predictions Video 06.05.21
If we can break above the $1800 level, then it is likely that we go looking towards the $1850 level, followed by the $1950 level. This obviously would be helped by a weakening US dollar, and with the jobs report coming out on Friday that could end up being the catalyst. As of late, gold markets have been paying special attention to the bond market, but the bond market yields have calmed down. The question now is whether or not the market has stabilized in that area, or are we getting ready to see more volatility?
If we were to break down below the $1750 level, then it is likely that we go looking towards the double bottom underneath. The double bottom underneath of course is an area that should be supportive so if we get down below there it is likely that we would break down towards the $1500 level. That would be a very negative move, and if we break the double bottom, I would be more than willing to start shorting this market. Until then, I think we simply go back and forth doing nothing.
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