Gold Price Forecast – Gold Markets Hover Near the 200 Day EMA

Gold Price Forecast – Gold Markets Hover Near the 200 Day EMA

Gold markets have gone back and forth during the day on Monday as we continue to dance around the 200 Day EMA. At this point, the market is trying to figure out where to go, especially as the 50 Day EMA sits just above and is falling. Ultimately, this is a market that needs to figure out where it is going longer term, and it could be determined by external factors. The US dollar strengthening will have a negative effect under most circumstances, but what you need to be even more cognizant of is what rates are doing in America.

If the bond market starts to see higher rates, that could drive money away from gold again, as we had seen last month. Ultimately, you need to think about the idea of storage. If you can earn a yield by simply holding paper, becomes much cheaper than trying to store gold in a vault.