Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Thursday, as we have seen more volatility in the marketplace. That being said, the $1800 level is an area that is extreme support and is very important to the uptrend. Not only is it a large, round, psychologically significant figure, but it is also an uptrend line that you need to pay close attention to.

Beyond that, we are starting to see the 50 Day EMA ready to cross below the 200 Day EMA, forming the so-called “death cross.” That is of course a bearish indicator, albeit one that is typically late. That could lead to more selling, but if we break down below this uptrend line, I think gold is in serious trouble.

Pay close attention to the bond yields in America, because they have something to say as well, after all the rising yields work against the value of gold as it is cheaper to hold paper than it is to store bullion. Ultimately, I think this continues to be a “fade the rally” type of market, but I think also that the market will eventually carve out some type of bottom. Longer-term, I do like gold but it may have one more flush lower before we can find enough value hunters to come in and pick the whole thing out.

That being said, the Federal Reserve changes its tune and starts to show cracks in its desire to raise interest rates, gold will be the first place that I will start looking to deploy my trading capital.

Gold Price Predictions Video for 01.07.22

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This article was originally posted on FX Empire


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