Gold markets have broken down significantly during the trading session on Friday as the 200 day EMA has offered a bit of resistance. Furthermore, the $1800 level of course was rather important from a psychological and structural standpoint, further backed up by the downtrend line that I have marked on the chart. Whether or not we can continue to go lower is a completely different question, but at this point in time it looks as if buyers are going to continue to struggle.
Gold Price Predictions Video 18.10.21
The $1750 level is a significant area of support as we have seen over the last couple of weeks, with the markets struggling to break down through there. If we were to break down below that level, then it is likely that we could go looking towards the $1725 level. That is an area that I have marked on the chart, as it has also offered support. Anything below their opens up the possibility of a retest of that crucial $1680 region that has shown itself to be so stubborn.
On the other hand, if we were to break above the candlestick from Thursday, that opens up the possibility of a breaking above the $1805 level, and a rush towards the $1835 level. Anything above that opens up a “buy-and-hold” type of scenario that we would be getting involved in. Looking at this chart, we are still looking like confusion will reign, and of course you have to pay close attention to the greenback, because it does tend to move in the opposite direction most of the time.
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This article was originally posted on FX Empire