Gold Market Technical Analysis
Gold markets formed a nice-looking candlestick during the trading session on Friday after forming a massive hammer on Thursday. At this point, the market is trying to figure out what we are going to do next, and the fact that we failed at the 50 Day EMA is interesting, and it is worth noting that the area is also a previous support level at the $1925 level. Because of this, the market is likely to continue seeing a lot of noise in this area, and it will continue to move based on the US dollar more than anything else. Keep in mind that the US dollar continues to strengthen quite drastically, so that is something that you need to pay close attention to.
The market will more likely than not continue to see a lot of volatility, as the US dollar continues to see a lot of influence on metals markets. If we break down below the hammer on the Thursday session, that could kick off a new wave of selling pressure, perhaps sending the market down to the $1800 level. That is an area that I think would attract a lot of attention, as it was where we launched from previously. It does look to me as if the market is going to continue to get thrown around quite a bit, as the US dollar has been such a major influence on everything. Interest rates in America are continuing to rise and have been working against the gold market, so therefore you need to keep an eye on the 10-year yield as well.
Gold Price Predictions Video 02.05.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/gold-markets-reach-50-day-160250860.html