Gold markets have pulled back just a bit through the trading session on Monday to show signs of exhaustion, but still has further to go in order to find support from what I can tell. Ultimately, the market will probably retest the $1820 region, and it is worth noting that the 50 day EMA in 200 day EMA sits just below there and could offer a bit of a short-term floor. If we break down below that level, then it is very likely the gold will get hammered for a bigger drop to the downside.
Gold Price Predictions Video 07.09.21
Pay close attention to how the US dollar behaves, because gold tends to move in the opposite direction. With that being said, I think that the market will continue to see a lot of noisy behavior and general, as the central banks around the world all look like they are going to be relatively loose with monetary policy, so it could affect currencies, just as the US dollar.
On the other hand, if we were to break above the $1835 level on a daily close, then that allows gold to go much higher, perhaps reaching towards the $1910 level which is where we had seen so much in the way of selling previously. That would obviously be simultaneous with a massive move in the US dollar as it would be weakening quite rapidly. The area just above is an obvious barrier that the market has been paying close attention to, so I do think that if we break above there it would attract a lot of attention. Because of this, I think the next couple of days could be very crucial as to where we go next.
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This article was originally posted on FX Empire