Yahoo Finance Gold Price Forecast – Gold Markets Test the Major Support Level
Gold Market Technical Analysis
Gold markets have fallen rather hard during the trading session on Monday to reach the $1800 region, before bouncing a bit and forming a hammer. Ultimately, this market is likely to continue finding value hunters in this area, but if we were to turn around a breakdown below the bottom of the candlestick, then we could continue to see a significant selloff. At this point, if we were to turn around and break above the top of the candlestick, then it is likely that we could go looking to the 200 Day EMA which is at the $1857 level.
Any rally at this point will more likely than not find sellers on signs of exhaustion that they can get into. At this point, it is going to come down to the US dollar, and what we see around the world. The gold markets obviously will be paying close attention to the bond market, as the yields rising will work against the gold market, just as the exact opposite could be true. Ultimately, we have to keep an eye on the correlation between all of these markets in order to trade gold, as it is so volatile most of the time. Ultimately, we are at a decision point so it will be interesting to see what happens next.
Either way, it is likely that we are going to be very volatile and noisy, so it does make quite a bit of sense that you cut down on your position size until we get a bit of clarity. One thing I would say though is that we are definitely in an area where a bounce could happen.
Gold Price Predictions Video 17.05.22
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This article was originally posted on FX Empire
