Gold Price Forecast – Gold Markets Continue Sideways Action

Gold markets have gone back and forth during the course of the trading session on Monday, to show signs of confusion yet again. That being the case, the market is presently hanging onto the $1750 level, an area that has been important more than once. Because of this, the market is likely to continue to see a lot of noisy behavior, as we are determining whether or not the market will strengthen or fall apart. One of the biggest drivers of the market without a doubt is going to be the US dollar, so pay close attention to the US Dollar Index. There is a massive negative correlation between the dollar and gold, and furthermore we also have to pay attention to yields.

Gold Price Predictions Video 28.09.21

The area that we currently trade in is crucial, so if we were to break down below the lows of last week, it is very likely that the market breaks down to the $1680 level underneath, which is a major support level on longer-term charts. Breaking down below that level would be catastrophic for gold, opening up the possibility of a drop down to the $1500 level.

On the other hand, if we were to turn around and take out the most recent high at the $1790 level, it is very possible that we will then test the 200 day EMA, then possibly the $1835 level next. Regardless, I do think that we are trying to build up some type of move, and therefore the next couple of sessions could be crucial. Look for an impulsive candlestick to follow, as we are about to get moving again.

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