Gold markets have rallied significantly during the course to break above the 50 week EMA and testing major downtrend line, but more importantly, test the $1800. We have fallen quite hard from that region and ended up forming a bit of a shooting star. I think at this point in time, the market is going to continue to struggle under the weight of selling pressure.
Gold Price Predictions Video 18.10.21
Interest rates in America have been rising and that typically works against the value of gold. Furthermore, the fact that the economy in America continues to grow and rates are rising for a potentially good reason, which means that gold becomes a lot less attractive as you have to pay for storage and the like. Furthermore, we also have a massive descending triangle that we are working with Ann, and it certainly looks as if it is ready to hold.
All of that being said, the market does turn around and take out the top of the candlestick, then I believe that we go looking towards the $1835 level, and then possibly even the $1900 level. Above there, then the market becomes more of a “buy-and-hold” situation. On the other hand, if we were to turn around a break down below the $1680 level, gold will certainly fall apart. Regardless, I think gold will continue to underperform both silver and platinum, as well as other industrial metals because they actually have uses at the moment. The market will continue to be very noisy, and difficult to trade from a longer-term standpoint.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire