Gold Price Forecast – Gold Markets Plunging Toward SupportGold markets are plunging towards the $1700 level again, an area that if we break down through could send gold plummeting another couple of hundred dollars.
Gold markets have fallen a bit during the trading session on Wednesday to reach down towards the $1700 level. The $1700 level of course is very crucial and therefore if we break down below that I think that a lot of traders will pile into the short side. Quite frankly, this is probably all about the US dollar but if you look at the couple of candlesticks ahead of this one, we had a shooting star followed by a hammer. We have not broken out of that range, so we are still technically consolidating but gold needs to make a stand right here.
Gold Price Predictions Video 04.03.21
If we were to break down below the $1700 level, it is likely that we will go looking towards the $1550 level initially, possibly even the $1500 level over the longer term. That being said, the market still is moving on the idea of stimulus and of course whether or not yields will continue to rise in the United States. Rising yields in the US does work against the value of gold in general, so the classic analysis between the two assets seems to be holding as of late.
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On the other hand, if we break above the $1750 level, then the market is free to go looking towards the $1800 level above. Quite frankly, we would need to see the US dollar take a bit of a punch in the face at that point, and yields would almost certainly have to drop. We are getting ready to form the “death cross” on the daily chart in the gold market, which might attract further selling although I am not a huge fan of that technical indicator.
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