Gold markets have rallied significantly during the course of the trading session on Friday to go looking towards the $1835 level but has been stymied by the significant resistance in that general vicinity. That being said, we are looking very bullish at the moment and of course a lot of people are going to be looking to short the US dollar. By extension, that means that gold should do fairly well, but it should be noted that we may have to pull back in order to pick up a little bit of momentum. Because of this, I would not be surprised at all to see a move back towards the $1825 level, because quite frankly we have seen this area offer resistance more than once. Because of this, I believe a little bit of patience probably goes a long way at the moment.
Gold Price Predictions Video 06.09.21
Underneath, you can see that the 200 day EMA is going sideways, and therefore it is likely that we would see it offer support. The 50 day EMA is trying to break above it, but because both of those moving averages are so flat right now, I would be hesitant to call it a “golden cross.” Nonetheless, it is obvious that we have seen a lot of buying pressure and that is something that we need to keep in the back of our mind in this scenario.
Pay close attention to the US Dollar Index, because it will move counter to the gold market, especially as we see so much guessing as to what the Federal Reserve is going to do next. Right now, nobody really seems to know but at the end of the day I do not even think they do. With this, expect more noisy trading.
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This article was originally posted on FX Empire