Gold Price Forecast – Gold Markets Get Crushed With Strengthening US Dollar
Gold markets have lost 2.5% shortly after the retail sales numbers came out much stronger than anticipated. Ultimately, the United States was expected to show negative retail sales figures, but the came out much stronger than anticipated. Because of this, it has people thinking that the Federal Reserve may have to tighten or taper much quicker than anticipated, which drove the US dollar higher.
Gold Price Predictions Video 17.09.21
When you think about the gold market, you should recognize that the gold market is negatively correlated to the greenback. If the US dollar continues to strengthen, that will work against the value of gold. We have driven down to the $1750 level, which is an area that has been important more than once. If we can break down below here, and after the candlestick for the trading session I suspect it is probably likely, then we will probably go looking towards the $1680 level.
The $1680 level is an area that has been important more than once, and therefore I think it will attract a lot of attention. If we break down below there, then it is likely that the market goes to the $1500 level. This would coincide with a much stronger than anticipated US dollar longer term, which would not be a huge surprise considering we are starting to see a lot of problems in China.
The US dollar is considered to be a safety currency, and as a result if people are jumping into the bond market, that also pushes up the greenback. This all comes together in order to put downward pressure here. I do not trust this market to the upside at this point, because this type of candlestick certainly will cause a lot of damage when it comes to confidence.
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