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Gold Price Forecast – Gold Markets Are Testing the 200 Day EMA
By: Christopher Lewis | May 9, 2022

• The gold market has fallen again during the trading session on Monday to reach the 200 Day EMA. At this point, a lot of attention will be paid to this area.

Gold Market Technical Analysis

Gold markets have fallen a bit during the trading session on Monday to reach down to the 200 Day EMA. The 200 Day EMA is an indicator that a lot of people pay close attention to, but at the same time, you can make an argument that the market has been falling for a while, so the question is whether or not we continue to drop? Or does gold finally turn around? The answer will probably be found in how the US dollar trades, so pay close attention to the US Dollar Index.

Inflationary concerns and of course monetary policy continue to drive where we are going in not only the US dollar but by extension the precious metals markets. We are currently between the 200 Day EMA underneath then the 50 Day EMA above, which is quite often an area of extreme volatility. At this point, we need to pay close attention to the lows of last week, because if we were to break down through there, it is likely that we could drop to the $1800 level, an area that we launched from previously, and of course is a large, round, psychologically significant figure that people will be paying close attention to. If we were to break down through that level, then gold unwinds quite drastically.

If we rally from here, I believe that the $1900 level could cause a certain amount of trouble, and therefore rallies will probably be sold into at the first signs of exhaustion, so therefore I am not very bullish, but I do recognize that if we were to break above the 50 Day EMA to even really start to think about it.

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