Gold Markets Plunge Below 50 Day EMA to Find Buyers

Gold Technical Analysis

Gold markets have plunged during the trading session on Wednesday after initially gapping lower. By doing so, the market looks as if it is giving up a potential massive selloff, but ultimately this is a market that I do think believes that we are on the precipice of something rather large. It is worth noting that the $1900 level just below is a large, round, psychologically significant figure, and of course bouncing from there does make a certain amount of sense.

If we were to break down below the candlestick for the session, at that point I suspect that gold will crumble. Pay close attention to the US Dollar Index, because it will have an influence on the market as it has a negative correlation most of the time. Furthermore, interest rates in the United States continue to spike, and that makes gold a bit less attractive. Either way, there is a gap above that probably needs to be filled, meaning that we could go looking towards the $1945 level.

On the upside, if we were to break above the recent high that was made just a couple of days ago, that opens up the possibility of a move to the $2000 level. At that point, I would anticipate more of a “buy-and-hold situation” going forward, as it would be very bullish looking at that juncture. I would anticipate that the market could go towards the highs again if we get that move. The next couple of days will be crucial, and therefore it will be interesting to see whether or not the area just below holds.

Gold Price Predictions Video 30.03.22

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