Gold markets have fallen during the trading session on Wednesday to reach down towards the same lows that we had hit during the trading session on Monday but have also bounced a bit in order to show signs of consolidation as we had formed a bit of a shooting star during the previous session. Furthermore, the 200 day EMA sits in the same area, right along with the 50 day EMA. Because of this, I think we continue to see a very short and tight range to deal with, and therefore it is likely that the market continues to be more of a short-term market, as we try to figure out whether or not we are going to break higher or lower.
Gold Price Predictions Video 22.07.21
If we break down below the lows of both Monday and Wednesday, then it is likely that we go looking towards the $1750 level. That is an area that has been significant support recently, as well as previous resistance. There is a certain amount of “market memory” built into this area, so it does make sense. On the other hand, if we were to break above the highs from last week, we would clear the overall range in order to fill the gap above which currently sits at the $1860 level.
With that being the case, we would then “fill the gap”, which is something that futures contracts do quite often. If we can break above there, then the market is likely to go looking towards the $1910 level, perhaps opening up the possibility of trying to go even higher than that.
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This article was originally posted on FX Empire