Gold Price Forecast – Gold Markets Form Extremely Negative Candle

Gold has gotten absolutely hammered during the trading session on Tuesday, slicing through the 50 day EMA as well as the 200 day EMA. As we tested the $1800 level, there was a little bit of support in the market, so we may get a short-term bounce. Regardless, this candlestick sets up a lot of negativity going forward, and if we break down below the lows of the trading session, it is likely that we will continue to fall even further. The question now will be “has gold topped again?”

Gold Price Predictions Video 08.09.21

The US dollar obviously has a major influence on where we go next, so keep that in mind and the negative correlation should not be ignored. If the US Dollar Index continues to rally, gold will get hammered. Another thing that is worth paying attention to is that the bond market, because if yields in America rise, then it works against gold also. All things been equal, this is a chart that looks very poor all of the sudden, so I would be very cautious about putting a lot of money in the gold market right now. Yes, we might get an opportunity to pick up a bit of value, but we need the US dollar to calm down before you can start to think about them.

Quite frankly, if we break down below the lows of the trading session on Tuesday, I think that kicks off even more selling, perhaps a move back down to the $1750 level. Remember, gold is a relatively thin market at times, so you need to be cautious about your position sizing as the market can suddenly take off in one direction or the other.

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