Gold Price Prediction – Gold Markets Continue to Pose a Breakdown Danger

Tuesday’s trading session saw a slight decline in the gold market, as it continues to appear that the market is close to breaking down.

Pay close attention to the U.S. dollar, as it is a destructive force on the gold market. Gold has responded as it has for some time, with the strength of the US dollar generating significant problems. Short-term rallies will be opportunities to sell, unless the Federal Reserve abruptly alters its overall stance. I simply don’t see it happening in the near future, therefore keep in mind that rallies are more often than not to present excellent selling chances. In that circumstance, I will take advantage of any indicators of tiredness that I may exploit.

When I consider gold, I consider it as a gamble on the bond market due to its extremely negative correlation. Ultimately, I believe that this market will eventually break down, maybe allowing a move down below $1,500 over the longer term, especially if the Federal Reserve gets exceedingly active as they may have to. Inflation is currently out of control, therefore they may have no other option. Gold will someday become attractive in this circumstance, but not right now. I believe you are beginning to see the first signs of tiredness in a market that has been quite stubborn.

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When examining the region just below, we can see that there has been a great deal of support around the $1675 level for several years. Breaking below there creates a massive air pocket that the market will likely closely monitor. In light of this, this market is likely to be, at the very least, intriguing.

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