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Gold markets drifted a little bit lower during the trading session on Tuesday, as we are reaching towards the 50 day EMA again. The 50 day EMA is the first sign of support, as it also backs up the crucial $1850 level. Furthermore, we could drop towards the downtrend line underneath and of course the 200 day EMA. At this point, if we can break down below the 200 day EMA then I believe that the gold market would fall apart. Breaking down below that level would open up the possibility of going back to the lows again, which is just below the $1700 level.
Gold Price Predictions Video 16.06.21
To the upside, if we can break above the highs of the last couple of weeks, then the market could go looking towards the $1950 level. If we break above there, then it is likely that the market goes looking towards the $2100 level. Keep in mind that the Federal Reserve meeting is over the next two days, and it is likely that we could see a lot of movement when that announcement comes late during the day on Wednesday.
It comes down to inflation and of course the idea of whether or not the Federal Reserve is going to continue to see reasons to pop liquidity into the marketplace or are they going to start talking about the idea of tapering? At this point time, I would anticipate that the next couple of days start to look a little choppy and confused, but once the Federal Reserve comes out with that statement, I would be much more apt to believe that move, whatever it ends up being.
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This article was originally posted on FX Empire