Gold Weekly Technical Analysis
Gold markets have fallen during the week to reach down to the uptrend line that has been so important for so long. At this point, the market is likely to continue to see that area defendant, which is roughly around the $1800 level. This is a market that I think will continue to see a lot of noisy behavior, perhaps in an attempt to save the bullish tone.
The market will ultimately see the $1800 level is crucial, so if we were to break down below there, then it’s likely that we get more selling pressure. That is the bearish case, and therefore I think you need to be cautious with the idea of interest rates and whether or not they are going to continue to spike. If they do, that could be bad for gold.
On the other hand, if we can break above the obvious resistance area in the neighborhood of the $1880 level, it’s likely that buyers will come in and pushes the market toward the $2000 level of the longer term. I do think eventually the gold market will take off to the outside, but I also recognize we will see a lot of volatility in the meantime, and you need to be prepared for that.
In other words, you need to keep your position size small, and only add when it works out for you. However, if you are a longer-term investor, you also recognize that the back-and-forth is rather normal, and to see this type of volatility is something that gold is known for. Ultimately, it’s still in an uptrend, despite the fact that we have seen a lot of noise.
Gold Price Predictions Video 20.06.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
