Gold markets have plunged again during the trading session on Thursday, as we continue to see a lot of downward pressure. By breaking down through an uptrend line, the market certainly looks as if it is ready to continue going lower, perhaps reaching towards the $1750 level. It is also worth noting that perhaps the breaking of the trend line allows the market to fall in an accelerated manner, as such obvious support has been broken through.
Gold Price Predictions Video 03.12.21
At this point in time, I have no interest in buying this market, at least not until we break above the $1800 level at the very least. The market participants have been hanging about the $1775 level, and now it looks as if we are going to continue much lower as we finally broke through this massive barrier. I think at this point in time, any strength in the US dollar will be absolutely toxic for gold. If rates rise in America, that will be absolutely toxic for gold as well. At this point in time, there is no real fundamental reason to think that gold goes higher, at least not for a longer-term move.
I do believe that there is a significant amount of support near the $1725 level, so we will have to pay close attention to that area. If we break down below there, then $1700 is almost certainly going to be had, followed by the crucial $1680 level which has been a longer-term support level for some time. Ultimately, I just do not see an argument to be buying gold at this point, because it is performing horribly, and should continue to do so unless something changes quite drastically in the world. Gold is not the safe haven it used to be.
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This article was originally posted on FX Empire
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