Gold markets have sold off during the trading session on Tuesday to reach down towards the $1765 level. At the time of writing, we still have not broken down below that level, but we certainly made a serious attempt at it. Whether or not we are going to hold here is a completely different question, but if we do I suspect it only allows the market to consolidate a bit further. After all, the markets are simply bang around in looking for some type of directionality. In fact, they may even get there next direction dictated by Jerome Powell, in the press conference after the two day meeting for the Federal Reserve. Looking at this chart, you can see that traders are already starting to front run what he may say.
Gold Price Predictions Video 15.12.21
That being said, I would not get overly excited about any move at this point in time, at least not until we get that press conference out of the way. If we were to break down below the $1760 level, it is very likely that we could continue to fall from there and go looking towards the $1725 level. On the other hand, if we were to turn around and rally, I believe that the $1800 level is crucial, followed by the $1820 level. Getting above all of that would make gold suddenly find itself in a bullish market. Pay close attention to real interest rates coming out the United States, as well as the value of the US dollar after the announcement. The next 24 hours will probably be choppy and sideways, followed by some type of volatility after Jerome Powell speaks.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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