Gold Price Forecast – Gold Markets Give Up Early Gains
Gold Market Technical Analysis
Gold markets have initially rallied during the trading session on Tuesday but gave back gains rather quickly as it looks like the market is finally running out of momentum. The market sits just above the 200-Day EMA, which of course is a large, round, psychologically significant figure. If we were to break down below that level, then it’s possible that the market could go down to the $1750 level, and below there we could see the market really start to undo itself.
Keep in mind that the US dollar has been sold off quite drastically, and therefore we have seen the gold market takeoff accordingly. However, the recent market moves have shown a negative correlation of 94% between the United States dollar and gold. In other words, they are moving almost completely opposite of each other. The $1800 level above is a large, round, psychologically significant figure, and an area where we’ve seen some selling pressure previously.
Because of this, it’s very likely that we may have to pull back in order to find enough momentum to go higher. However, if we are going to see the US dollar start to strengthen again, the market could very well start a rollover. Keep in mind the market continues to see a lot of volatility, so that’s the one thing that we need to pay the most attention to. Ultimately, I think this is a scenario where you have more of a “fade the rally” type of momentum coming into the market. That being said, if we were to break above the $1800 level, we could really start to take off at that point.
Gold Price Predictions Video for 16.11.22
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