Gold markets gapped lower to start Wednesday’s trading session, but then turned to test the 200-day EMA. The 200-day EMA is of course an area that many people will be interested in, so don’t be surprised to see resistance come into the picture. The market fragmenting from here will gain some more momentum and we can finally look at the $1775 level. If we can break down there, we are likely to be looking at the $1750 level.
Gold Price Predictions Video 09.09.21
Be very careful with the US dollar as it has a negative correlation with the gold market and this of course comes back into the picture. All in all, I don’t believe there is a real reason to buy this market until we clear the $1,835 level where we saw significant selling pressure. In fact, the $1835 level is essentially the same thing as a “brick wall” and as such, I think it might take a lot of momentum for that to happen.
If we clear this area, then there is likely to be a short-term rush to the market, which of course will have a lot to do with pushing this market higher. I don’t see that happening though, so at this point I think the US Dollar Index is worth paying attention to because it can give you some “foresight” about where we’re going next.
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