Financial markets are a bit of a mess these days, and gold will reflect that along with everything else.
Gold markets initially tried to rally on Monday, but gave back gains only to show signs of weakness again. Ultimately, the market should continue to experience a lot of volatility and negativity. Gold markets giving up gains near the $1840 level suggest that we may be going to the bottom of the overall consolidation zone, which lies at the $1800 level.
The 200-day EMA sits just above the $1850 level and is going sideways. This suggests that the market is currently looking for some type of bottom, and the $1800 level could be a huge zone. The $1800 level is not only a large, round and psychologically important number, but it is also an area that has seen action in the past, so I think it is crucial. If we were to fall below the $1800 level, it is likely that we would drop down to the $1750 level quite quickly.
If we were to break above the $1850 level, chances are we could hit the $1880 level. The $1880 level is an area that has resisted more than once, so I think it will likely be crucial if we break through this level and most likely send the market much higher. At this point, the market will likely see an attempt to get back to the $2,000 level, which would obviously attract a lot of attention, which could bring in more money.
Interest rates in the United States will continue to have a major influence on the future direction of the gold market. Ultimately, I think the only thing you can count on here is high volatility, and that being said, the market is going to see swings both ways, so you have to be very careful with your position size. , and maybe focus on short-term charts more than anything else. After all, financial markets are a bit of a mess these days, and gold will reflect that along with everything else. The US dollar also has a negative influence on the gold markets, so pay attention to the US dollar index. Today’s candlestick suggests more weakness than strength, so you should probably keep that in mind.