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Gold markets went back and forth during the course of the trading session on Friday, as it looks like we are going to continue to respect the $1765 level, as we have pulled back from there. That being the case, it looks like we are running out of momentum, and therefore it will be interesting to see what happens next. If we break down below the bottom of the candlestick for the trading session on Friday, then it is likely that we go looking towards the lows again. The size of the candlestick on Thursday was rather impressive, but it is worth noting that this is an area we have seen trouble at before.
Gold Price Predictions Video 04.10.21
Pay attention to the US Dollar Index because it has in the direct negative correlation to this market, and therefore it is worth keeping an eye on. Furthermore, the interest rates in America are strengthening overall, and that of course helps the value of the US dollar, and therefore becomes a bit of a cycle. At this point in time, if we were to break down below the most recent low, then it is likely we could go looking towards the $1680 level. Yes, we had an explosive move to the upside on Thursday, but we have not had any follow-through.
On the other hand, if we were to break above both Thursday and Fridays highs, it is likely that we go looking towards the 50 day EMA which is near the $1783 level. Getting above that would of course be a longer-term bullish sign, but I do not necessarily think that is what we are about to see.
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This article was originally posted on FX Empire