Gold markets rebounded significantly during Friday’s trading session to look to the $ 1835 level but were hampered by significant resistance in this general environment. That being said, we look very optimistic right now and of course a lot of people will try to sell the US dollar short. In a broader sense, this means that gold should do pretty well, but it should be noted that we may need to pull back in order to gain some momentum. Because of this, it would not surprise me to see a return towards the USD 1825 level, as in all honesty we have seen this area offer resistance more than once. Because of this, I believe that a little patience is probably enough right now.
Gold Price Predictions Video 09/06/21
Below you can see that the 200-day EMA is trending sideways and is therefore likely to offer support. The 50-day EMA is trying to break above it, but with these two moving averages so flat right now, I would hesitate to label them the “golden cross”. However, it is evident that we have seen a lot of buying pressure and that is something that we need to keep in mind in this scenario.
Pay close attention to the US dollar index because it will move against the gold market, especially since we are making so many guessworks about what the Federal Reserve will do next. Right now nobody really seems to know, but at the end of the day I don’t even think they know. Expect fair trading with it.
You can find an overview of all today’s economic events in our economic calendar.
This article was originally published on FX Empire