Gold Price Forecast – Gold Markets Take a Dive
Gold markets have fallen rather hard during the course of the trading session on Friday as we continue to see a lot of back and forth in this market. The downtrend line of course has been respected, and the fact that we have broken out of a short-term range tells me that we are more than likely going to continue lower over the longer term. This does not necessarily mean that I jump in right away and start shorting, but I think that short-term rallies will continue to be selling opportunities over the next several days. In fact, it is not until we break above the highs of last week that I would consider going in the opposite direction.
Gold Price Predictions Video 01.11.21
There is a lot of noise and support underneath, and I do think that it could cause a lot of difficult trading ahead, but it is clear to me that the momentum is most certainly to the downside, and this will only accelerate if the US dollar continues to strengthen. Having said that, if the interest rates in the United States continue to go higher, then it is very likely that we would continue to see gold suffer at the hands of that. Short-term rallies are going to be nice selling opportunities, and that is exactly how I am going to play this market.
That being said, if we were to break the highs of last week, then it is likely we go looking towards $1835 level. That is an area that offers a significant amount of resistance that once broken, we kick off a “buy-and-hold” type of scenario. That looks very unlikely at the moment.
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