Gold markets have gone back and forth during the course of the week to show a lot of choppy behavior during the last five trading sessions, sitting just below the 50 week EMA. If we can break above the 50 week EMA, then it is likely that the market could go higher, perhaps reaching towards the $1835 level. If we break above that level, then it is possible that we could go looking towards in $1900 level. Obviously, this is a market that would have to see the US dollar start falling to help the gold market bounce a bit. On the other hand, if the US dollar were to start strengthening, that could cause serious headaches for the gold market.
Gold Price Predictions Video 23.08.21
To the downside, the market was to turn around and fall below the $1680 level, then it opens up a massive amount of selling as the market could simply fall apart at that point. This is simply going to be a function of interest rates and the US dollar, right along with gold demand itself. I think at this point, we are in the process of trying to save the market, and the weekly candlestick from the previous week was a good start, but when you look at the overall attitude of the markets, it is obvious that we have a lot of uncertainty ahead, so it might be a bit difficult to trade gold with any type of size in the near term. I believe that you need to pay close attention to the yields in the 10 year note, because as those yields gain, that works against gold.
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This article was originally posted on FX Empire
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