Technical analysis of the gold market
Gold markets rallied a bit in Tuesday’s trading session, but clawed back gains as we continue to see the US Dollar terrorize almost everything in financial markets. With interest rates rising a bit during the day, it was a bit of a perfect setup for gold to return gains. Look at this chart, it is very likely that we can test the $1700 level below, maybe even the $1680 level. If we break below the $1680 level, it is likely that gold will really start to take off on the downside, possibly reaching the $1500 level.
On the other hand, if we were to reverse a break above the candlestick high for Monday’s session, that would be a strong sign, short-term lease. This opens up the possibility of a move to the $1750 level, an area that was previously both support and resistance. The 50-day EMA sits at the $1772 level and is falling, so I think that also comes into play as a potential resistance barrier as well.
As long as the US dollar remains strong, it is very likely that gold will continue to struggle. This will be especially true if interest rates also continue to rise. Anyway, there are a lot of chartists who will start looking at this through the lens of a potential double bottom, but I think it’s a bit early to start talking about it, especially after the market turned around. he has. Expect volatility and keep your position size small until the market moves in your favor.
Gold Price Prediction Video for 07.09.22
For an overview of all of today’s economic events, check out our economic calendar.