Weekly gold price forecast – gold markets come into support
Gold markets initially tried to rebound over the course of the week, but then gave up gains to crash to the $ 1,750 level. Obviously, the $ 1750 level is an area that has shown some level of support before, but the fact that we are closing at the very bottom of that range suggests that we may be preparing for a breakdown. A break from there should open a potential move towards the $ 1680 level, an area previously massively supported.
Gold Price Prediction Video 09/20/21
The hammer bouncing off this area was pretty impressive, but if you look at the longer term charts we’ve been falling for a while so it looks like we’re going to continue to drift down for the longer term. However, if we break above the $ 1,800 mark, it is possible that we could move higher. In general, this is a market that has been struggling for a while, and as long as the US dollar starts strengthening, gold should plunge.
If we fell below the $ 1,680 mark, we could probably hit the $ 1,600 mark. That’s a big, round, psychologically significant number, of course, but honestly, I think that when we break down, we go deeper. Pay close attention to the US Dollar Index as it will have a huge negative impact on this market if it continues to recover. In general, this is still a very suspicious looking market, but it’s worth noting that the $ 1680 level was a massive support so it will be difficult to break through.
You can find an overview of all today’s economic events in our Economic calendar.
This article was originally published on FX Empire