Gold Price Forecast – Gold Markets Gapped LowerGold markets gapped lower to kick off the trading session on Wednesday to reach down towards the $1775 region. Higher rates in the 10 year note continue to work against the gold market.
75% of retail CFD investors lose money
Gold markets have gapped lower to kick off the trading session on Wednesday to show signs of negativity as we had reached down towards the $1775 level. At this point, the $1750 level underneath there could be the gateway to much lower pricing. Quite frankly, the 10 year yield continues to rise, and that is toxic for gold markets as people will chase yield over the metal. Furthermore, it drives up the value of the US dollar, and that of course can cause major issues as well.
If we do break down below the $1750 level, the market is likely to go down at least a couple of hundred dollars, as it will open up the “trapdoor” to much lower prices. I anticipate at that point we would probably go looking towards the $1500 level. On the other hand, if we bounce from here then it is likely that we will go looking towards the 50 day EMA which is closer to the $1850 level, and then possibly the $1900 level.
Ultimately, this is a market that will continue to be very noisy but the key level here is the $1750 level. If we can keep above that level, we could be forming some type of basing pattern for a longer-term move, but at this point in time I think it is a bit difficult to simply jump in and place that bed, as we have seen so much in the way of noisy behavior and of course the bond market continues to grab the attention of traders around the world. Sitting still or waiting for a daily close underneath that level are the two best trades that you can take right now.