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Gold markets gapped lower to kick off the trading session on Wednesday but then turned around to fill the gap to show signs of life. That being said, the market has shown signs of exhaustion during the day, and it suggests that the $1775 level will continue to be important in this market, so it is not a huge surprise that it has offered a little bit of resistance.
Gold Price Predictions Video 23.09.21
Gold of course is inverse to the US dollar, which is a strong at the moment, so it should not be a huge surprise that we have seen this bounce fail a bit. I would not be overly surprised to see a little bit of a push lower, but obviously the FOMC minutes might have something to say. At the end of the day though, it is very unlikely that the Federal Reserve changes much, so it will be interesting to see how this plays out. If we can break down below the $1750 level, at that point I think gold is in real trouble. As far as buying is concerned, I think at this point in time the market needs to break above the 200 day EMA to show enough strength to trust it.
To the upside, if we were to break above that level then I believe that this market could go looking towards the $1835 level, an area that has been resistance multiple times. Nonetheless, I think at the very least you should expect choppy behavior so you should have your position size in check accordingly. Sooner or later, we will get that bigger move, and judging by the way the market is acting, it could very well be lower.
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This article was originally posted on FX Empire