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Gold markets have rallied a bit during the trading session on Wednesday as the trend line continues offer a bit of support. As long as we can stay above the lows of the Tuesday session, I suspect that gold will try to recover. Whether or not it can recover for a bigger move is a completely different question, as there is a lot of noise just above. Keep in mind that the 200 day EMA currently sits at the $1800 level, and it is very flat. This suggests that perhaps the market will continue to see a little bit of noise just above, and of course you have to keep the idea of the US dollar in the back of your head. It is because of this that I think rallies are more likely than not to be sold into, at least from a short-term trading type of perspective.
Gold Price Predictions Video 02.12.21
All of that being said, if the market does reach towards the $1820 level, then there are a lot of buyers out there and quite frankly short-sellers that would desperately need to get out of the market. At that point, I would expect gold to “melt up” towards the $1875 level. To the downside, if we break down below the lows of the trading session on Tuesday, then I think the market goes looking towards the $1750 level, possibly even the $1725 level. Pay close attention to the trend line, but with the jobs report on Friday, it is very likely that we see a lot of choppy behavior over the next couple of days until we get some type of answer out of the Bureau of Labor Statistics.
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This article was originally posted on FX Empire