Gold markets initially rally during the trading session on Monday, but have given up the idea of hanging on to rallies from what I can see. With that being the case, the market is very likely to continue being noisy, and therefore you need to keep that in the back of your mind. At this point, it appears that the easiest trade is to simply look for rallies that you can sell at the first signs of exhaustion. Gold of course is heavily influenced by the US dollar, so if it starts to rally, that could be reason enough to dump gold.
Gold Price Predictions Video 14.12.21
The 50 day EMA sits just above current pricing and just below the $1800 level, right along with the 200 day EMA both. Both EMA indicators are flat, so that tells you just how quiet everything truly is. With this being the case, I think it is probably only a matter of time before we see exhaustion hit this market a little bit more seriously, perhaps sending gold down towards the $1760 level. Breaking down below that could send the market much lower, perhaps reaching towards the $1725 level. Anything underneath there would be very negative for this market, and send it much lower.
To the upside, we need to break above the $1820 level to show any signs of real strengthen this market, something that we have not seen for a while. Ultimately, a lot of this comes down to real yields in the US dollar, but more importantly at this point in time it comes down to a serious lack of liquidity in the market for the next two weeks.
For a look at all of today’s economic events, check out our economic calendar.
Read More: Gold Price Forecast – Gold Markets Continue to See Trouble Just Above
