Gold Price Forecast – Gold Markets Continue to Show Choppiness

Gold markets have initially tried to rally during the day on Tuesday but gave back the gains as we continue to hover around the $1900 level.

Gold Markets initially rallied during the trading session on Tuesday but gave back the gains as we broke back down below the $1900 level. As you can see on the chart, I have made a purple circle showing the general area where we should be trading. With this being the case, I think that the market is likely to see a lot of noisy behavior, as we try to figure out whether or not the breakout is going to stick. Furthermore, the $1900 level is important, so you should be paying close attention to it overall.

If we can break above the highs at $1919, then the market is likely to go looking toward the $1950 level, which of course is an area where we have seen quite a bit of resistance previously. Ultimately, the market is going to continue to see a lot of noisy behavior and will have to make a significant decision. If we do break down from here it is likely that the $1850 level could be supported, just as the downtrend line underneath that could be. Further compounding that is that the 50-day EMA is reaching towards that area.

The 50-day EMA does tend to attract a lot of attention, so pay attention to it. All things been equal, I do not have any interest in shorting this market in the short term, so therefore I like the idea of looking at this as a “buy on the dips type of experience just waiting to happen. There are a lot of people out there worried about inflation, and that does tend to help gold more than anything else.

For a look at all of today’s economic events.

Reporter: Christopher Lewis