Gold Market Technical Analysis
Gold markets have gotten absolutely slaughtered during the trading on Monday as the 10-year yield broke above the 3.25%. Quite frankly, this is a horrific candlestick, and it looks as if gold is going to go looking to test the $1800 level, which is a major, round, psychologically significant figure. If we were to break down below this level, it could change a significant amount of attitude in this market, sending gold much lower. Quite frankly, the way the US dollar is behaving, I would fully anticipate it’s a real threat.
We need to see bonds calm down before gold can pick up traction, so even though some people will look to gold for safety, the reality is that the math does not work out. It’s not that we cannot turn around, but until yields drop, it’s going to be very difficult for gold to take off.
If we break through the uptrend line, it’s possible that we could see gold dropping down to the $1750 level, possibly even the $1700 level. On the other hand, if we were to break above the $1880 level, it’s possible that we could continue to go higher, reaching the $1900 level, maybe even $2000, but right now it does not look like we have the momentum, as we continue to bang around in a relatively well-defined consolidation that I have marked on the chart. Because of this, I would think that short-term traders may be able to take advantage of it, but if you have a longer-term trait in mind, you may have to wait until we are able to put money to work. It is worth noting that the market continues to see more volatility, not less.
Gold Price Predictions Video 14.06.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire