Gold Price Forecast – Gold Markets Recover Slightly

Gold markets have formed a little bit of a ‘harami’ candlestick formation, which will capture the attention of some people. That being said, it looks as if the $1750 level underneath remains very supportive, so we will have to see whether or not the market can actually break down below it. If it does, then gold will unwind. On the other hand, if we take out the Thursday candlestick it is likely the gold will rally again and go looking towards the $1900 level, perhaps even followed by the $1960 level.

Gold Price Predictions Video 08.02.21

Interest rates in the United States have been rising, so that does tend to work against the value of gold, something worth paying attention to. With that in mind I like the idea of waiting for an impulsive candle in one direction or the other to put any money to work because quite frankly we are at a major decision point. Remember, you do not make the decisions for the market, it is the other way around. With that in mind I like the idea of playing the next trade based upon the next large candlestick.

I do recognize that there are a lot of questions out there still as far as global recovery and what happens with the US dollar, but we are seeing reconciliation in the Senate, which is congressional speak for “forcing the stimulus package through.” That of course should be negative for the US dollar, but at the end of the day this will be the fifth stimulus package, so at one point or another the world begins to realize that does not do that much good. The phrase “diminishing returns” comes to mind.

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