Gold markets have initially rallied during the course of the trading session on Tuesday but gave back the gains almost immediately in order to form a bit of an inverted hammer. This is something that we have seen multiple times, as well as hammers trying to figure out exactly where we should go going forward. Ultimately, this is a market that I think continues to see a lot of volatility but if we were to break down below the $1790 level, then it opens up the possibility of a move down to the double bottom at the $1680 level.
Gold Price Predictions Video 28.07.21
To the upside, if we could go higher to look towards the 200 day EMA, as we have multiple times, if we can break above there it is likely that we could go looking towards the $1830 level. If we can break above there, then the market is likely to go to the $1910 area. Breaking that then opens up the possibility of a move towards the $2100 level.
Pay close attention to the US Dollar Index, because it continues to see a lot of choppiness as well, and of course the US dollar is highly negatively correlated to the gold market. Furthermore, you have to keep an eye on the Federal Reserve as they are going to have a statement late during the trading session on Wednesday, which of course will have a massive input on what happens with the greenback going forward as well as interest rates. The gold market continues to be very choppy, so therefore it is worth being very patient going forward.
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This article was originally posted on FX Empire