Gold markets have had a very rough week as the Federal Reserve has suggested that typing could be coming much quicker than anticipated, as the market reacted very poorly with the US dollar strengthening. The US dollar is like kryptonite for the gold market when it spikes the way it has, as we have seen gold drop below $1800. At this point in time, we are approaching a significant uptrend line, and therefore it is very likely that we are going to see more support in this general vicinity.
Gold Price Predictions Video 21.06.21
However, if we break down below this uptrend line, it is very possible that we could go looking towards the $1700 level and the “double bottom” that sits just below there. Breaking down below that opens up the floodgates for much lower gold prices, opening up the possibility of a move all the way down to the $1500 level rather quickly. If the US dollar continues to strengthen in general, that could very well end up being what happens. I believe at this point, the next week or two will be the most important ones to watch. If we can find some type of stability, then we could keep up the uptrend, but it is obvious to me that the buyers are most certainly in a lot of trouble at this point.
Ultimately, I do think that eventually there will be a great time to buy gold, but right now I just do not see it. At the very least, I would be very interested in what happens over the next two weeks or so, because I believe it will dictate what happens for the next six months.
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This article was originally posted on FX Empire