Gold forecast: noisy behavior ahead
If you are a short term trader, you can look at the gray box on the chart as a potential trading range that you might be involved with.
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Gold markets fell significantly during Thursday’s trading session to reach the same level of support we had seen in several sessions previously. At this point, the market appears to be trying to stick to the $ 1,790 level before rebounding and hammering out a bit. The market is also sitting at the 200-day EMA which is flat, so that suggests we’re just going to go sideways for a while.
On the upside, it is evident that the $ 1,825 level is massive resistance, and if we can get past that level, it is likely that we can look up the gap that has yet to be closed, this which means that the market might go looking towards the $ 1860 level. Obviously, there are a lot of negative correlations between the gold market and the US dollar, which you should pay special attention to as well. With that in mind, note the US dollar index, which is a major driver in this market with this 10-year yield.
If we were to fall below the support level then it is likely that we would look to the $ 1750 level, which was an area that had a lot of significant resistance before, so market memory kicks in, and that makes definitely a good target. The market will likely continue to see a lot of loud behavior, but we could dwell on it. A break below this level will open a move towards the $ 1680 level, where we previously formed a double dip.
If we cross the top of the above spread, it is likely that this market is heading towards the $ 1910 level, opening up the possibility of a move towards the $ 2100 level. Better to be careful with this market, but if you are a short term trader you can look at the gray box on the chart as a potential trading range that you might be involved with.. Finally, it depends on the delay you choose to use.