Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Gold Forecast: Downwards Pressure Fades


Ultimately, we more likely than not will see buyers come back as they try to protect their wealth in a very uncertain environment.

  • The gold market has fallen again during the trading session on Wednesday, as we continue to see a lot of pressure in this market.
  • It’s been a bit of a surprise, because at one point it looked like gold was never going to fall again.
  • However, coupled with gold we had a massive move lower, the type of move that is almost never found in a perfect vacuum.
  • In other words, there were more sellers coming.
Advertisement

$1800 Potential Target

Last week we ended up forming several inverted hammers in a row, which of course is a very negative sign. We then broke down and now we continue to drift lower in general. As the US dollar continues to try to strengthen in general, that will put some negative pressure on gold. Whether or not the longer-term correlation holds remains to be seen, but it is one that’s well-known so I would imagine at least in the short term you have to look at it through that prism.

The 200-Day EMA is close to the $1800 level, and I think a lot of people would be looking at that as a potential target. I don’t necessarily believe that it means anything more than a lot of lazy number of traders will be bothered with it, but it will create some type of reaction would be my guess. With that in mind, I think it’s a situation where we probably have a little bit of follow-through, but ultimately, we more likely than not will see buyers come back as they try to protect their wealth in a very uncertain environment.

On the upside, there is a whole world of hurt waiting at the $1880 level, where we’ve seen a lot of selling pressure. That selling pressure extends to the $1900 level, so above there would be difficult to reach. If we do, then I think we had back to the recent highs near $1960. Alternatively, if we were to break down below the 200-Day EMA at the $1800 level, then it’s likely we go down to the $1750 level given enough time. Ultimately, I do think that there are buyers underneath that we clearly have not found them quite yet, so it’s probably going to continue to be a very noisy affair to say the least. Regardless, be patient and wait for clarity.

Gold chart

Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.