Technical analysis of the gold market
Gold markets initially fell in Wednesday’s trading session, but found plenty of buyers below to turn the tide. As soon as the open cry market opened up, buyers started jumping in and getting aggressive. Ultimately, this is a market that will eventually find its way to the 200-day EMA, and maybe even above. The market will pay close attention to the $1870 level, an area that was previously resistant. Ultimately, I think given enough time, this is a market that will continue to see a lot of volatility, especially since interest rates are everywhere.
If we were to break below the low of the candlestick for Wednesday’s trading session, it would open further selling up to the $1800 level. The $1800 level below offers the “market floor,” so falling below would be catastrophic. On the other hand, if we were to reverse a break above the 50-day EMA, the $1900 level will be a potential target, and once the market clears this area, we could see the level of $2000 be targeted, but obviously we have to pay close attention to the US bond market for some type of tent.
Also, you should probably watch out for the US dollar, as it can negatively correlate with gold quite often. Everything is linked to the bond market, so this is the most important thing to pay attention to. We are still technically in a two-year uptrend but certainly threatening to turn that around. I expect a lot of noise and shopping in this area.
Gold Price Predictions Video 06.06.22
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