Gold markets have rallied a bit during the course of the trading session on Tuesday but then gave back the gains above the 50 day EMA. The market continues to look confused at best, and at this point in time it looks like the market is going to continue to go back and forth as we dance around the two major EMA indicators.
Gold Price Predictions Video 21.07.21
It is worth noting that the candlestick for the Monday session was a hammer, so now we have a bit of conflict, showing a major amount of indecision in general. With this being the case, the market is likely to continue to see a lot of back and forth, and indecisive behavior. At this point time, the market is likely to see a lot of volatility, especially as there are concerns about the global reopening situation as the Delta variant reps through various emerging markets.
Ultimately, this is a market that will move counter to the US dollar, and therefore you need to pay close attention to the US Dollar Index as well. Ultimately, as the US dollar strengthens it suggests that people are much more interested in owning bonds than they are gold. If that is going to be the case, then it is very likely that we will continue to see downward pressure. If we break down below the hammer from the Monday session, then I think the market is likely to go towards the $1750 level. If we break down below that level, then it is possible that we go looking towards the $1680 level next. To the upside, we need to wipe out the losses from late last week to go towards the gap above at $1860.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire