Gold Market Technical Analysis
Gold markets tried to rally at the beginning of the session on Wednesday but then broke down rather significantly to show signs of negativity. Ultimately, this is a market that is going to continue to see a lot of downward pressure now that we are breaking below the $1750 level. Rallies at this point in time should be a selling opportunity, at the first signs of exhaustion. The $1800 level above is a large, round, psychologically significant figure, which is also an area that is not only psychologically important but also the sideways consolidation area.
After the massive bearish candlestick from the Tuesday session, it suggests that we will have a bit of follow-through, especially as we close that the very bottom of the range. Ultimately, when you have candlesticks like this, there is typically a bit of follow-through going forward. After all, candlesticks like this do not happen in a vacuum.
If we were to break above the top of the candlestick from the Wednesday session, essentially the $1815 level. If we were to see the market break above there, then it would be a complete turnaround and obviously a very bullish move. In that scenario, the market is more likely than not going to be likely to run to the $1850 level.
Pay close attention to the US dollar and the interest rate situation in the United States, because as they both strengthen, that works against the value of gold quite drastically. The market is more likely than not going to continue to see more of a “fade the rally” type of approach, and that is something that should be paid attention to.
Gold Price Predictions Video for 07.07.22
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This article was originally posted on FX Empire