Gold markets have gone back and forth during the course of the trading session on Tuesday as we await the results of the conversation between Jerome Powell and Congress, and therefore it is worth noting that the gap above could get filled if he trashes the US dollar. At this point, the Federal Reserve does look as if it is trying to walk back some of the recent pseudo-hawkishness that we have heard and therefore it makes a certain amount of sense that perhaps gold may get a short-term boost.
Gold Price Predictions Video 23.06.21
To the downside, the $1750 level could offer a certain amount of support, as it was previous resistance. That being said, by the time we get through the congressional testimony, we could get a much clearer picture as to where the US dollar goes, and if it does in fact drop in value, that could send this market looking towards the $1850 level. Keep in mind that the market breaking down below the $1750 level could open up the possibility of a move down to the double bottom underneath the $1700 level.
All things been equal, this is a market that is a little bit oversold in the short term, and therefore a little bit of a bounce could make a certain amount of sense, but if we break above that gap above is a sign that the market could go looking towards the $1900 level, possibly even turn the entire thing around. That being said, I believe that this is a market that is on the precipice of something big, but we need to let the market determine the direction before putting money door.
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