Gold Price Forecast – Gold Markets Continue to Threaten a Breakdown

Gold Market Technical Analysis

Pay close attention to the US dollar, because it is like a wrecking ball for the gold market. We have seen gold react as it has for some time, with US dollar strength causing major issues. Short-term rallies will be selling opportunities, unless of course the Federal Reserve suddenly changes its overall attitude. I just don’t see that happening anytime soon, so keep in mind that rallies will more likely than not offer nice selling opportunities. In that situation, I am going to take advantage of any signs of exhaustion that I can get involved in.

When I think about gold, I think about it as a play on the bond market, as it such as a huge negative correlation. Ultimately, I think this is a market that is eventually going to break down, perhaps opening up the possibility of a move down to the $1500 level over the longer term, especially if the reserve becomes extraordinarily aggressive like they may have to. Inflation is out of control at this point, and therefore they may have no choice. In this situation, gold will eventually be attractive, but it’s not going to be right now. I think we’ve got a situation where you are fading the first signs of exhaustion in a market that has been very stubborn.

When you look at the area just below, we are most certainly seeing a lot of support right around the $1675 level, which goes back several years. Breaking down below there opens up a huge air pocket that the market will probably pay close attention to. With this, this is a market that is going to be interesting to say the least.

Gold Price Predictions Video for 21.09.22

For a look at all of today’s economic events, check out our economic calendar.