Gold Weekly Price Forecast – Gold Markets Give Up Early Gains for the Week

Christopher Lewis
·1 min read

Gold markets have initially rally during the course of the week but gave back gains in order to form a bit of an inverted hammer. The $1750 level continues to offer support, and therefore if we were to break down below there then I think it is likely that we drop towards the $1680 level. Breaking down below that level would open up a huge move down to the $1500 level. On the other hand, if we were to turn around a break above the candlestick for the week, then it is likely that we go looking towards the $1835 level.

Gold Price Predictions Video 27.09.21

The US Dollar Index of course has a negative correlation to gold, and as a result it is likely that the dollar rising will work against the value of gold. On the other hand, if the market sees the US dollar falling, that will give a lift to gold markets going towards the 50 week EMA. Breaking above that then would add more momentum into this marketplace, opening up the possibility of a breakout.

Interest rates in the United States of course have a major influence on gold, as rising rates are a killer for the value of gold. That being said, the market is likely to continue to see that 10 year yield correlation come into effect as well. Nonetheless, this is a market that certainly looks as if it is ready to drop, so a break down below the candlestick has me not only shorting this market, but perhaps a bit aggressively.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: