- Gold markets have fallen rather hard during the trading session again on Monday, as the US dollar has found its footing again.
- Ultimately, this is a market that had reached the 200-Day EMA and has since found selling pressure.
- With interest rates rising again in the US dollar strengthening overall, does make a certain amount of sense the gold would pull back.
- The question now is whether the market is going to find support at the $1725 level.
Underneath there, we have a 50-Day EMA that comes into the picture to offer a significant amount of support as well. Anything below they are more likely than not will attract a lot of selling pressure again, as it will be a breakdown of the previous area that was resistance, which you would expect to see as support.
Pay Attention to Dollar and Interest Rates
On the upside, if the market does turn around, then it’s likely that we could see an attempt to get back to the 200-Day EMA. Keep in mind that there is a lot of noise between there and the $1800 level, so again, it’s not a huge surprise to see that the market was a bit sluggish in that area. The size of the candlestick for the trading session on Friday does suggest that we are picking up momentum, and of course, the fact that it is Thanksgiving week in the United States also will have a major influence on where this market goes next because there will be a certain amount of the trading volume out all of the pictures. Estimates say that we cannot have moved this week, I just think that a sudden reversal is probably asking a lot in the next 2 days.
Regardless, pay close attention to the US dollar and interest rates. If they both start to rise, that’s toxic for gold” in this market much lower. On the other hand, if we see the US dollar take a bit of a breather yet again, then we have the possibility of gold being taken off again. Eventually, gold will be a great purchase, but right now it’s a bit much to ask for clarity in this market, as it is very little in the way of clarity and markets overall. Position sizing will be the most crucial thing that you can pay attention to, as the volatility could get out of hand with a lack of volume.
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