Gold Price Forecast: Gold markets have rallied during the initial course of the week to test the $1800 level and the 50 week EMA. However, we have given up those gains and it now looks as if we are going to perhaps pull back a bit.
Gold Price Forecast
It looks as if we are currently stuck in a larger consolidation area between $1800 and $1700, and therefore I think it is likely that we will see more choppy behavior than anything else. The markets are currently being thrown around by the US dollar and risk appetite, not to mention the 10 year yield.
Underneath, if we were to break down below the small double bottom that we have formed, that would more than likely open up a big move down towards the 200 week EMA. On the other hand, if we clear the $1800 level it is likely that the market then goes looking towards $1950 above.
That is the bullish case of course, but right now we have seen a serious drop in the strength of the uptrend, so I think that at the very least we are going to see a little bit of a pullback. It is going to be difficult for longer-term traders, but as long as that little bit of a double bottom hold, then longer-term we should see this market go looking even higher.
This is more of an investment and less of a trade though, so that something that you need to pay close attention to. If the 10 year yield calms down significantly, then it is likely that the gold markets will start to strengthen again.