Gold Weekly Technical Analysis
Gold markets have fallen during the course of the week to reach down to the $1900 level. The $1900 level is a major round figure that a lot of people will be paying close attention to, and therefore it is worth noting that we did in fact bounce from this level. If we do continue to hold above there, then it would confirm the “triple bottom” that we had formed previously. The $1900 level will have a lot of attention paid to it, so it does make sense that traders step back into the market.
On the other hand, if we were to break down below that level, it would be extraordinarily negative and could send the gold markets much lower. At that point, I anticipate that the $1850 level would be the first target, and then perhaps even the $1800 level. On the other hand, a breakout to the upside could send this market looking towards the $2000 level, maybe even the $2050 level.
Ultimately, this is a market that had previously formed a major double top on longer-term charts, just below the $2100 level. That is an area that I think will be difficult to overcome, so keep in mind that an attempt to get there will be fraught with danger. This is not to say that it cannot happen, but obviously, we need to see some type of major “risk-off environment” suddenly appear in order for that to be the case. This is a market that will continue to see a lot of volatility, but that is nothing new for the gold markets as they are relatively thin at times.
Gold Price Predictions Video 04.04.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/gold-markets-fall-test-support-162147532.html