Gold Market Technical Analysis
Gold markets have fallen rather hard during the trading session on Monday as we continue to see the US dollar strengthen quite drastically. Because of this, the market is likely to see further downside, and at this point in time, we need to be very cognizant of the $1880 level. This is the bottom of the support zone that we are currently testing, and therefore if we break down below there, it is likely that we would go much lower, perhaps opening up the possibility of a move down to the 200 Day EMA which is just above the $1850 level.
On the other hand, if we were to turn around and break above the 50 Day EMA, then it is possible that we could go to the $1970 level. That would be a return to the consolidation area that we have been in, but I would point out that it is very scary at this moment to go long, because of the massive downward pressure that we had seen.
Pay attention to the US dollar overall because the US dollar is a major influence in this market at times. We start to see the correlation sometimes, but at the same time is also possible that the gold and the US dollar markets can both go higher at the same time if there is a huge rush to safety. A lot of this is going to come down to the US 10-year yield because if it continues to spike higher, that will be like kryptonite for the gold market. All things being equal, it is probably best to wait to see what the next daily candlestick prints.
Gold Price Predictions Video 26.04.22
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