Gold markets have gapped slightly to kick off the trading session on Monday, but then turned around to fill the gap. At this point, the market looks as if it is going to try to reach towards the $1835 level, an area that has been a massive resistance barrier. If we can break above that level, then it is likely that we go much higher. At that point, I would anticipate that the market goes looking towards the $1900 level. That being said, we are a little bit stretched at this point, and I think that pullbacks at this point in time probably open up the possibility of buying on the dip, unless of course we break back down below the 200 day EMA, then it is possible that we go much lower. At this point, the market could go looking towards the $1750 level.
Gold Price Predictions Video 09.11.21
Keep in mind that the market is going to be negatively correlated to the US Dollar Index in general, and of course interest rates in America. If interest rates in America continue to rise, it is very likely that will work against the value of gold. It is worth noting that the candlestick is a little less than enthusiastic, so we could in fact get a bit of a pullback. Nonetheless, it certainly looks as if we are trying everything we can to take off to the upside.
It is worth noting that a lot of people talk about gold as being a hedge for inflation, but that clearly has gone from gold to Bitcoin, as gold has significantly underperformed in an inflationary environment. All things been equal, pay close attention to the $1835 level, that will tell you everything you need to know.
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This article was originally posted on FX Empire
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