Gold Price Forecast – Gold Markets Continue to Drift Lower

Gold Market Technical Analysis

Gold markets dropped during the trading session again on Thursday, as the market has been doing for some time. At this point, the market is likely to see a lot of noisy behavior, and as we approach the $1700 level, there will be a significant amount of support that extends down to the $1680 level. With that being the case, the market is likely to continue seeing a lot of noise, but if we were to break down below the $1680 level, then we could see the gold market really start to unravel. In that scenario, I anticipate that gold looks to reach the $1500 level.

Keep in mind that the jobs come out on Friday, and that will of course have a major influence on what happens next with the US dollar and interest rates. That obviously has a major influence on gold, so I think we may be setting up for a short-term bounce, but trend-related moves would be difficult to see any change at this point. The $1750 level is an area that had been important previously, and also the bottom of the bearish flag that we broke out of.

Regardless, I think that sooner or later we are going to see this market test the lows, the question will be whether or not they can hold. The market will continue to be noisy, but I would not chase this market to the downside but am more than willing to start shorting rallies as they occur. I have no interest in trying to buy gold, at least not yet. The Federal Reserve will continue to cause the US dollar to rally, and therefore it’s likely that gold will suffer.

Gold Price Predictions Video for 02.09.22

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