Gold markets have rallied a bit during the trading session on Monday as it looks like the following US dollar should continue to prop up the market. That being said, there is a downtrend line that is coming into focus, and of course the $1850 level has offered a bit of resistance previously. All things been equal, if we can break above this area on a daily close then I think we have further to go. Until then I think it is likely that we will see a short-term pullback. All things been equal, this is a market that I think should continue to be noisy, but I think at this point we have to ask questions of the bond market and whether or not we are going to see rates rise or fall?
Gold Price Predictions Video 11.05.21
At this point in time, if we do fall, I believe that the $1800 level will offer a significant amount of support. All things being equal, if the 200 day EMA sits just below there, I think that the market will continue to look at that as a bit of a floor, so all things being equal I think that what we are looking at is an opportunity to get long on pullbacks, unless of course we break down below all of that, then it opens up a move back down to the $1750 level. Pay close attention to the US dollar, as gold markets do tend to move in the opposite direction, and most certainly have been as of late has will continue to see plenty of noise.
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This article was originally posted on FX Empire