Gold markets have fallen during the trading session on Tuesday to reach down towards the $1750 level, an area that has been important more than once. The fact that we are trying to hang on here is a good sign, but quite frankly the close of the daily candlestick will be the most important part. If we were to close at these lower levels, it is likely that we will eventually see this market push through the bottom and go looking towards the $1725 level again. Granted, there is no guarantee, but it clearly would be a resumption of the selling pressure.
Gold Price Predictions Video 06.10.21
The size of the candlestick is rather impressive, and it does threaten the bottom of the hammer from the previous session, possibly opening up the possibility of turning the candle into the so-called “hanging man” formation. On the other hand, if we were to turn around and break above the top of the candlestick for both Monday and Tuesday, that would be a very bullish sign and could send this market much higher, attacking the $1781 level where the 50 day EMA currently sits. That would take a significant turnaround at this point, but it is still a possibility.
Pay close attention to the US Dollar Index, because it will clearly have a major influence on where precious metals in general gold, so you need to pay close attention to what is going on at that point, because if the US dollar strengthens it almost certainly works against the value of this market, just as the US dollar falling works for it. This is a market that I think continues to see a lot noisy behavior, but at the end of the day it does look as if it is trying to favor the downside.
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