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Gold Price Forecast – Gold Markets Break Through Support

By:
Christopher Lewis
Published: Sep 28, 2021, 15:13 UTC

Gold markets have fallen to break through support during the trading session on Tuesday, clearing the $1740 level. That being said, there is still a fight all the way down to the bottom.

Gold Price Forecast – Gold Markets Break Through Support

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Gold markets have been very noisy during the trading session on Tuesday to break down through the $1740 level as there was a rather big run up in US bond yields. This continues to make paying for storage on a large gold purchase as being unnecessary, because quite frankly you can get a rate of return on only a few pieces of paper. With that being the case, it is very likely that the market will continue to see rallies to sell into on our way down to the $1680 level. That is an area that I will be paying close attention to, because quite frankly it is so crucial from a longer-term standpoint.

Gold Price Predictions Video 29.09.21

On the other hand, if we were to rally and retake the 50 day EMA, then I might be convinced to start buying gold, but right now it just does not look that likely. I do believe that it is only a matter of time before we get some type of big move, and right now it certainly looks as if it is likely to be to the downside. All things being equal, I think this is a market that continues to follow yields quite closely, as the 10 year yield has gone straight up in the air. You have to keep an eye on that chart in order to trade gold right now, and of course the US Dollar Index. They are all correlated, as higher yields has a positive effect on the currency, and of course gold is denominated in US dollars. With this, I think we continue to sell short-term rallies that show signs of exhaustion.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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