Gold Markets have risen quite a bit over the course of Wednesday’s trading session to hit the 200-day EMA, and perhaps more importantly to break through major resistance. The fact that we showed up at all and gained more than 2% is quite impressive because frankly, the gold market has been doing nothing for the past few days but going back and forth to clip trading accounts. That said, we have a significant amount of resistance just above where we are, so even if we keep moving higher, it’s very possible we’ll see a small pullback.
Gold Price Predictions Video 14.10.21
Clearing the $1810 level opens a move towards the $1835 level where I see even greater resistance. Clearing all that opens up the possibility of gold going much higher. The US dollar will of course have its say, so pay close attention to what is happening in the US Dollar Index as it is slightly negatively correlated with this market. Looking at the size of the candlestick, it is clear that there has been a shift in momentum, and at this point you should pay close attention to the fact that we have seen a sudden and violent reversal.
These candlesticks very rarely happen in a vacuum, so we may find ourselves racing to the top of overall consolidation territory again in the past six months. Keep your position small, or even stay out of the market until we get some sort of breakout from this nasty range we’ve been and for what seems like a lifetime.
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This article was originally posted on FX Empire