Gold markets have rallied significantly during the course of the week, showing signs of extreme strength as we busted through the $1835 level quite rapidly due to the inflation numbers coming out the United States. With this in mind, it looks like we have further to go, and I do believe that it is probably only a matter of time before we tackle the $1900 level above. Pullbacks at this point should continue to be buying opportunities but you probably will not get a clear view of that on the weekly timeframe. It is because of this that I am using the daily chart, at least for entries and exits.
Gold Price Predictions Video 15.11.21
Note that the market has been going back and forth for a while, and now looks as if we have formed not only an inverse head and shoulders pattern, but a potential rounded bottom. In other words, there are a lot of things going on in this chart that tell me we should go higher and therefore I will trade gold as such. This will be especially true as long as we can stay above the weekly candlestick that we just printed. Beyond that, we have close that the very highs of the week, so that in and of itself is a very bullish sign as well.
Gold will continue to do fairly well, despite the fact that the US dollar is rising. Most traders are unaware of the fact that the US dollar and gold both went up at the same time in the 1980s, which was also a time where inflation was still an issue. At this point, we may be seeing that same phenomenon.
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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