Gold Price Forecast – Gold Markets Continue to Test Support

·2 min read

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Wednesday as we continue to see the $1800 level underneath offering support. The market continues to be very volatile, and of course, highly sensitive to interest rate moves in America. Furthermore, the greenback itself has been rallying, so it does make sense that gold may struggle with that. Ultimately, I have no interest in trying to buy this market and recognize that it would take quite a bit of effort to turn things around. That being said, I do recognize that the 200 Day EMA is essentially a barrier that we need to overcome to get truly bullish.

The gold market has been a little oversold, but if we do not get much more in the way of momentum, we could eventually break down. The hammer from Monday would be a potential setup for shorting if we break down below that candle. Breaking down below that level could open up the move down to the $1750 level, possibly even the $1700 level.

At this point, if we break above the 200 Day EMA, then it is possible that we could go to the $1900 level, which is a large, round, psychologically significant figure. All things being equal, this is a market that would take quite a bit of effort to get a big move but given enough time we should get a bit of clarity given enough time. In the short term, you need to be cautious with your position size, but recognize that when the time comes, you need to be aggressive as moves like this typically set up for an explosion.

Gold Price Predictions Video 19.05.22

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This article was originally posted on FX Empire