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Gold markets have gone back and forth during the course of the trading session on Wednesday as we are testing the bottom of the overall consolidation area. After all, the $1790 level has offered significant support underneath, and as you can see, we have tested it multiple times over the last couple weeks. To the upside, the 200 day EMA sits at the $1808 level, and we also have the 50 day EMA sitting just above there. All things being equal, this is a market that I think will take its cues from the Federal Reserve and it is possible that sooner or later they have to make a decision as to where we go longer term.
Gold Price Predictions Video 29.07.21
At this point, it will come down to what happens with the US dollar. Keep in mind that the US dollar is negatively correlated to the gold market, so that being the case the announcement later in the session will give us a bit of a “heads up” as to where gold may go next. If we break down below the $1790 level, then it is likely that we go looking towards the $1750 level. Breaking below that level then opens up the possibility of a move down to the $1680 level.
To the upside, if we break above the $1830 level, then it is likely that we could go looking towards the $1860 level. That is the top of the gap, and that of course is going to be a bit of resistance and of itself. If we break above there, then the market very likely could go looking towards the $1910 level.
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This article was originally posted on FX Empire