Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Gold Forecast: Markets Bounce after Initial Drop

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Gold markets have fallen a bit during the trading session on Tuesday but turned around to show signs of life as we continue to see a lot of volatility in the markets overall. Keep in mind that the gold markets are highly sensitive to the US dollar and the interest rate situation worldwide. As long as rates continue to see interest rates rise, it is going to work against the value of gold as you do not get any type of interest on that holding.

The 50-Day EMA comes into the picture just above the crucial $1680 level, which is an area that a lot of people have been paying attention to, as it previously was supported for a couple of years. That being said, I think this is a situation where we continue to see plenty of noise, but I’m looking for signs of exhaustion to jump on. The gold markets have been in a downtrend for quite some time, I just don’t see how that changes anytime soon. When you look underneath, there is a significant amount of support and the $1615 level, and there has been a little bit of a “double bottom.”

If we break down below there, then it’s likely that we would see a move down to the $1600 level, which is a large, round, psychologically significant figure, but when you look at the longer-term charts, it’s not particularly important. I think you find much more support near the $1500 level.

On the other hand, if we do rally above the 50-Day EMA, then we see the market possibly trying to get to the downtrend line, which is right around the $1720 level.

  • This is a market that I think continues to see more of a back-and-forth and volatile movement, so therefore you need to be cautious with your position size but recognize that it is more of a “fade the rally” type of situation going forward.
  • I do believe eventually we break down below the lows, but it may take a while to make that happen.
  • Signs of exhaustion will be a great opportunity from everything I can see, and therefore I don’t have any interest in trying to buy this market, at least not until the Federal Reserve changes its monetary policy, which it is nowhere near doing.

Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.

Gold

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews