Gold Market Technical Analysis
Gold markets have gotten crushed during the trading session on Tuesday as we have broken through the $1800 level, and then broken below the hammer from the Friday session. By doing so, it suggests that the market is going to go much lower, breaking below the $1770 level. Now that we have formed this candlestick, it suggests that the breakdown is finally here. At this point, the $1750 level is a target, followed by the $1700 level.
Furthermore, the 50 Day EMA has broken below the 200 Day EMA, forming a bit of a “death cross”, which is a longer-term bearish signal that a lot of people will pay close attention to. Rallies at this point will be looked at with suspicion, and now that the “double bottom” has been broken, then it’s likely that there are plenty of sellers out there willing to get involved. As long as the US dollar continues to strengthen, it’s a huge sign that the gold markets will continue to pay the price.
Gold will eventually find a bottom, but that obviously is it right now. At this point, I like the idea of shorting this market every time it bounces and shows signs of exhaustion, at least until we break above the 50 Day EMA, which is almost $100 above where we are now. Because of this, I think this is a market that is going to continue to get crushed. Keep in mind that gold markets can be very volatile at times, so be cautious about your position size. Ultimately, this is a market that I think has further to go in this direction.
Gold Price Predictions Video for 06.07.22
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This article was originally posted on FX Empire