Gold markets have rallied rather significantly during the course of the trading session on Wednesday to reach towards the 200 day EMA, and perhaps more importantly to smash through major resistance. The fact that we are all the way appear and have gained over 2% is rather impressive, because quite frankly the gold market has done nothing but gone back and forth over the last couple of days to chop up trading accounts. That being said, we do have a significant amount of resistance just above where we are, so even if we do continue to go higher it is very possible that we see a little bit of a pullback.
Gold Price Predictions Video 14.10.21
Clearing the $1810 level opens up a move towards the $1835 level, where I see even more significant resistance. Clearing all of that then opens up the possibility of gold going much higher. The US dollar will have its say of course, so pay close attention to what is going on in the US Dollar Index as it has a bit of a negative correlation to this market. Looking at the size of the candlestick, it is obvious that there has been a shift in momentum, and at this point you need to pay close attention to the fact that we have seen a sudden and violent reversal.
These candlesticks very rarely happen in a vacuum, so we may be racing right back towards the top of the overall consolidation area for the last six months yet again. Keep your position size small, or even stay out of the market until we get some type of break out from this nasty range that we have been and for what seems like a lifetime.
For a look at all of today’s economic events, check out our economic calendar.
Read More: Gold Price Forecast – Gold Markets Go Parabolic