Gold Price Forecast – Gold Markets Continue to Threaten a Major Breakdown

Gold Market Technical Analysis

Gold markets have broken down quite significantly during the trading session on Thursday to test the crucial $1700 level. It is this level that I think is the gateway to much lower pricing. If we were to break down through there, then it’s likely that we could drop as much as $200. The US dollar continues to be very strong, and that is working against the value of gold overall.

Furthermore, you should take a look at the candlestick for the trading session on Thursday, showing signs of complete weakness. That being said, the market is likely to continue to see a lot of noisy behavior and could even see a bit of a bear market bounce. The $1750 level should offer quite a bit of resistance, and signs of exhaustion near that area should be a nice selling opportunity.

On the other hand, if we were to break down from here, I think it would be like a “trapdoor” for the trend and therefore we could go down rather quickly in that scenario. Regardless, I think gold is probably going to struggle for quite some time, and therefore it’s possible that you will need to be very cautious with your position size, mainly due to the massive amounts of volatility that will be seen in this market.

All things being equal, it’s very likely that we will see a lot of choppy behavior on a day-to-day basis, but the trend seems to be very clear, at least for the time being. Unless the Federal Reserve does something drastic, it’s difficult to imagine a scenario where we suddenly turn around for a sustainable move.

Gold Price Predictions Video for 15.07.22

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This article was originally posted on FX Empire

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