Gold Price Forecast – Gold Markets Pull Back

Gold markets have pulled back a bit during the trading session on Wednesday, as we continue to see a lot of volatility in financial markets overall. That being said, the market is likely to see a lot of noise in general, especially as the Senate looks likely to flip over to the Democrats. If that is going to be the case, the market is likely to see the US dollar all over the place. Longer-term though, the gold market should be the major beneficiary to a shrinking US dollar, which was already a factor, even before the Senate runoff election in Georgia.

Gold Price Predictions Video 07.01.21

To the downside, I believe that the previous downtrend line and the $1900 level both offer plenty of support. At this point in time, the market is likely to see a certain amount of demand, and that is assuming that we even get there. All things being equal, the 50 day EMA is starting to turn upward from there, and with that being the case I think it is only a matter of time before buyers would jump back in. To the upside, the $2000 level would be the next target, followed by the $2100 level.

Given enough time, I think we not only go to that area, but much further as the US dollar looks set to lose extreme amounts of value over time. Even if it does not end up being the case, it is also possible that the world has so many potential headlines, the gold becomes a “safety trade.” In other words, I think this is becoming a “win-win situation.”

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