Gold markets have initially pulled back during the course of the week to show signs of weakness but have turned around completely to show continued strength. That being the case, the fact that we ended up forming a bit of a hammer shows that we are very likely to continue to go higher. If we can break above the $1850 level it is very likely that we go looking towards the $1950 level. On the other hand, if we were to turn around a break down below the weekly candlestick, that could be somewhat negative, but I still think that the double bottom near the $1700 level is essentially massive support.
Gold Price Predictions Video 17.05.21
If we were to turn around a break down below the $1700 level, the market would fall apart and go looking towards the $1500 region. This all comes to the value of the US dollar, and as the US dollar of course has a massive negative correlation to the market, and therefore I think that the US Dollar Index should be paid close attention to. If it starts to fall, then I do anticipate that a lot of money will go flowing into the gold market, based upon the idea of inflation and of course the fact that it would be a continuation of the long term uptrend that we had been in into the late part of last year. This has been a significant correction, but at the end of the day it has been just that. I do believe eventually this market could break out, but the question now is whether or not it needs to pull back before hand to do so?
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This article was originally posted on FX Empire