Gold Markets I’ve had some really bad days and tried to recover on Friday but honestly couldn’t hold onto anything that looked like a win. Because of this, the market ended up forming a kind of inverted hammer, which is a negative sign. We’re right at the $1750 level, an area that obviously needs a lot of attention because it was important before. Therefore, if we went below that level, I think it would initiate new sales, and maybe a very ugly turn of events for this market. In fact, we could drop all the way back to the $1680 level, an area that has been quite significant.
Gold Price Predictions Video 20.09.21
On the bright side, if we come above the top of this candlestick, it’s likely that gold could be looking at the 50-day EMA, but that would be a very difficult and painful move. I wouldn’t expect that to happen very quickly, especially as the US dollar is currently trading against the value of gold. So I think it’s more than likely only a matter of time before we collapse, as interest rates in America support the greenback versus the gold market, and I don’t see any real change in attitude anytime soon.
One thing I think you can probably count on is a lot of jerky behavior so be careful with your position size until we get some sort of clarity. If we go below the $1750 level I will be aggressively short of the gold market as I think it opens a bit of a “trap door”.
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This article was originally posted on FX Empire