Gold Market Technical Analysis
Gold markets have fallen rather hard during the trading session on Friday to break through a trendline but have managed to turn around to show signs of life again. Ultimately, this is a market that I think will find plenty of buyers given enough time, but you should keep in mind that this is also a market that is going to be extraordinarily volatile. With that in mind, I think that you need to look at this through the prism of a longer-term trade more than anything else.
If we were to break above the high of the Friday candlestick, it’s very likely that we would see an attempt at a recovery, perhaps trying to stay within the consolidation area that we had been in for a while. In that scenario, we could rise as high as $1880 and not change much. On the other hand, if we were to break down below the bottom of the candlestick for the Friday session, that would be a collapse of support and could sing gold much lower. Keep in mind that gold is highly sensitive to interest rates, and the fact that interest rates started to drop in America could help gold going forward.
The question now is whether or not people are starting to buy bonds, dropping that yield down to make gold somewhat more attractive. In the meantime, I think the only thing you can count on is a lot of volatility and noise, so therefore you need to be very cautious about your position size, but I certainly would not hesitate to take a shot at this if it bounces.
Gold Price Predictions Video for 04.07.22
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This article was originally posted on FX Empire
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