Gold Price Forecast – Gold Markets Continue to Get Squeezed

Gold markets have gone back and forth during the course of the trading session on Monday, as we continue to get squeezed between the familiar 50 day EMA underneath and the 200 day EMA above. Because of this, it is as if gold has nowhere to go and it is going to continue to see a lot of pushing back and forth. The gold market continues to get thrown around by interest rates and the US dollar in general, so you will have to pay attention to both.

Gold Price Predictions Video 27.04.21

If we break down below the 50 day EMA it is very likely that the market will go looking towards the $1725 level. If we break down below there, then it is likely we will then start looking towards the double bottom just below the $1700 level. At that level gets hammered, then gold is in serious trouble. On the other hand, if we turn around a break above the $1800 level on a daily close, the market should then go looking towards the $1850 level, possibly even the $1950 level.

This is a market that I think continues to see a lot of volatility in choppiness, but I do like the idea of gold for the longer-term move. The recent action does suggest that the 200 day EMA will continue to be paid close attention to, so that is why I believe that a daily close above $1800 opens up the floodgates. We need to see the US dollar get hammered in order for that to happen, and perhaps even more importantly we need to see yields slowly rise, not take straight off in the air like they had previously.

For a look at all of today’s economic events, check out our economic calendar.