Gold Price Forecast – Gold Slams Against a Downtrend Line

Gold Market Technical Analysis

Gold markets have pulled back just a bit during the trading session on Tuesday, only to turn around and bounce into the downtrend line. The downtrend line of course is something that you should be paying close attention to, due to the fact that it has been relatively reliable. Furthermore, the 50-Day EMA sits just above there, and of course we have the $1680 level in the same neighborhood.

Gold markets breaking above the resistance area could open up the possibility of a move to the $1700 level, possibly even to the $1740 level. Furthermore, you should also pay close attention to the 200-Day EMA which is sitting just above the $1750 level. That is of course a longer-term trend signal that a lot of people pay close attention to. Regardless, signs of exhaustion will be thought of as a selling opportunity, or at the very least more consolidation. If we break down below the bottom of the candlestick for both of the sessions, then we could see gold dropping down to the $1650 level, maybe even the lows.

If we break down below the hammer from last week, I think that opens up the possibility of a move down to the $1600 level, and then $1500 level. Keep in mind the gold is very sensitive to the US dollar and interest rates, so pay close attention to both of those markets. While interest rates have continued to look strong, the US dollar has failed to follow. If and when it does, that could be very damaging for this attempt to break out. The market is likely to see a big move soon, and with the election at the end of the day on Tuesday, that could have a bit of an influence as well.

Gold Price Predictions Video for 09.11.22

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