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Gold Price Forecast – Gold Markets Rally in Relief Bounce

By:
Christopher Lewis
Published: Sep 27, 2022, 13:48 UTC

The gold market has rallied a bit during the trading session on Tuesday and a bit of a relief rally, and what is otherwise a very negative market.

Gold FX Empire

In this article:

Gold Market Technical Analysis

Gold markets have bounced a bit during the trading session on Tuesday as we continue to see a lot of volatility. That being said, we recently broke through a major support level, and therefore I think it’s probably a situation where we get the occasional bounce, but it is more likely than not going to be a market that continues to go lower. The $1680 level was the support level that the market had been paying such attention to for quite some time, and therefore breaking down below there it’s likely that we continue to see a lot of deterioration.

Interest rates rising in the United States right along with the US dollar means that the gold market will continue to suffer. However, when you measure gold against other currencies such as the Euro and the British pound, it’s very strong. This tells you that the chart you are looking at in this video is a US dollar specific issue, and tells you just how you should be trading the Forex markets. I like the idea of fading signs of exhaustion as soon as they occur, and I do believe that the area right around the $1680 level will continue to be a major barrier to overcome.

Underneath, the $1600 level could be the initial target, and then eventually the $1500 level which I think has quite a bit more interest around it. Either way, I think the only thing you can count on is lots of choppy volatility, but I still think there is a lot of negativity out there that will continue to be very difficult to overcome.

Gold Price Predictions Video for 28.09.22

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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