Gold markets have fallen a bit during the course of the trading week, but then turned around to recover. When they did, we ended up forming a bit of a hammer which of course is a bullish sign. With this, it is very likely that we continue to see the markets as being one that will move right along with the US dollar, as there is a major negative correlation between these two markets. If we break down below the bottom of the candlestick though, it is very likely that we go looking towards the $1680 level. That is an area that of course has been massive in its meaning, so if we were to break down below there, I think gold would collapse.
Gold Price Predictions Video 04.10.21
Looking at this chart, if we do break out above the top of the inverted hammer from the previous week, it is very likely that we could go looking towards $1830 level. If we break above that resistance barrier, then it is likely that we could go looking towards in $1900 level over the longer term charts. At this point, it is all about the US dollar more than anything else, so with that being the case I have no other thing to bank for against but the US dollar.
The confusion over the last couple weeks shows just how tight the markets are at the moment, and that could give you the idea that inertia is building for a bigger move. That being said, we need to see the next move play out before we put money to work from a longer-term standpoint.
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This article was originally posted on FX Empire
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