Gold Price Forecast – Gold Markets Bounce From Extreme Lows

Gold Market Technical Analysis

Gold markets have initially plunged during trading on Monday, but then turned around to show signs of life again. By doing so, the market looks as if it is trying to recover a bit, but there is so much in the way of resistance above that I think it is probably only a matter of time before we sell off. Ultimately, this is a market that I think will continue to see a lot of noisy behavior, especially as the US dollar has such a huge negative correlation to it.

At this point, any short-term rally will be looked at with suspicion, especially at the first signs of exhaustion. If we break down below the bottom of the candlestick for the trading session on Monday, then it’s likely that we will continue to plunge much lower, perhaps opening up the possibility of a move down to the $1600 level. The $1600 level is obviously a large, round, psychologically significant figure, but it is a minor one.

I think it’s likely that we will continue to see the US dollar work against the value of gold, so be cautious, and recognize that a bounce could end up being a nice selling opportunity. Until the Federal Reserve changes its overall attitude, I just don’t see how gold takes off. In fact, I think that gold is going to continue to be a “fade the rally” type of situation. Ultimately, I have no interest in buying gold anytime soon and I think that is going to be the correct call. However, we are getting a little oversold.

Gold Price Predictions Video for 27.09.22

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