Gold Price Forecast – Gold Markets Trying to Recover
Gold markets have rallied a bit during the course of the trading session on Wednesday as we continue to see the market try to recover after a massive selloff. As we are pressuring the $1750 level, that is an area that I think a lot of people will pay close attention to, as the area previously had been significant support. Market memory suggests that it should be resistance going higher, so we will have to wait and see whether or not that ends up being the case. If we do see signs of exhaustion, then it will be time to start shorting gold yet again.
Gold Price Predictions Video 12.08.21
If we can break above the highs of the Monday candlestick, then it is likely that the market could go looking towards the $1800 level. That being said, if the market were to see some exhaustion in this area, then it is likely that we will retest the bottom of the Tuesday, perhaps opening up the possibility of a move back down to the $1680 level. The $1680 level of course has seen a double bottom form, and that is where we bounce from multiple times to show signs of resiliency. If we were to break down below that level, then it is possible that we could go looking towards the $1500 level as it will open up a significant “trapdoor” to lower pricing.
I do believe that the PPI numbers might have a bit of a say as to where we go next, but at the very least it does make a certain amount of sense that gold bounces a bit from this massive selloff. Where we go longer term will probably be a question for the weekly timeframe.
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