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Gold Price Forecast – Gold Markets Look Set to Break Out

Christopher Lewis
·2 min read

Gold markets have gapped higher to kick off the trading session on Thursday, pulled back to fill the gap, and then turned around to form a hammer. That is a very bullish sign, and we are trying to break out above the $1900 level yet again. This pressure does suggest that we are eventually going to make that happen and go looking towards the $1950 level above. This all comes down to the US dollar, which of course continues to get whacked as well.

Gold Price Predictions Video 04.01.21

The biggest problem that we face right now is reading too much into the last couple of candlesticks, due to the fact that the majority of the trading public will not even be working, as they are focused on the holidays. That being said though, we had been rising for a while and obviously we have a very weak US dollar. This sets up for gold to rally, and therefore I think it is only a matter of time before we do just that. Ultimately, the market should go looking to much higher levels, but even if we pull back from here, I think that there is an area that had gap previously at the $1850 level that should attract a certain amount of attention as well.

In fact, it is not until we break down below the $1800 level that I am concerned about gold, and I think that is not going to happen anytime soon. Ultimately, I think that any time we dip there will be plenty of buyers as we continue to worry about stimulus coming out of multiple central banks.

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

This article was originally posted on FX Empire

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