Gold Price Forecast – Gold Markets Continue to Challenge 50 Day EMA

Gold markets have pulled back just a bit during the trading session on Thursday to show a little bit of hesitation, but quite frankly at the end of the day we have just seen a massive bounce from a major technical level in the form of the 200 day EMA. It is because of this that I think that the market will eventually go looking to higher levels, not to mention the fact that we have a massive amount of stimulus out there so this suggests that we will continue to see demand for gold, as a hedge against the perceived inflation coming down the road. Whether or not we actually get that inflation might be a different question, but at this point it looks like the US dollar remains on its back foot.

Gold Price Predictions Video 22.01.21

The $1900 level above makes a nice target initially, but eventually I think we go beyond that to look towards the $1960 level. To the downside I believe that the 200 day EMA will continue to offer support, right along with the $1800 level. Underneath there, we have a significant area all the way down to the $1750 level that I think causes a certain amount of support as well. With that being the case, I like the idea of buying short-term pullbacks and I do believe that eventually gold goes much higher. Stimulus coming out the United States will most certainly make this happen by itself, and then of course we have the technical support underneath also.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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