Gold markets have rallied significantly during the trading session again on Friday, as we continue to see gold recover from extreme lows. That being said, I want to see how this market behaves on a pullback in order to tell whether or not there are buyers willing to get involved and support it. The US dollar of course will have its say as to where we go next, as a stronger dollar can work against the value of gold. However, most importantly we need to pay close attention to the yields in America, because quite frankly the yields in the treasury markets have been a major driver of where the greenback goes. As the greenback rises, it most certainly will put downward pressure on the gold market.
Gold Price Predictions Video 19.04.21
Gold is currently reaching towards the 200 day EMA, so if we were to break higher, I think that will be the next major resistance barrier, right along with the $1800 level. If we can break above the $1800 level, then it is likely that we go much higher, perhaps reaching towards the $1850 level. That being said, I do think that it is probably only a matter of time before we at least attempt that move, but in the short term it appears that we have a lot of work to do.
If we were to turn around a break down below the $1725 level, that would be very negative, and almost certainly would have this market looking for the $1500 level, perhaps even down to the $1300 level given enough time. Obviously, that would come with massive US dollar strength so keep that in mind.
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