The gold markets have fluctuated during Wednesday’s trading session as a result of the bond market’s volatility. The bond market has indicated an increase in interest rates throughout the day, therefore it makes logical that gold continues to see a slight pullback. Ultimately, this is the market where I believe there is the most pessimism because the US currency is resuming its destructive behavior.
At this point, the retreat makes a great deal of sense, but the question is whether or not it will be a substantial down or whether it will be a temporary pullback. I expect the $1775 level to provide some support, followed by the $1750 level. Nonetheless, if rates continue to rise in the United States, it makes likely that gold prices would decline significantly. In fact, if we breach the $1750 barrier, it is likely that we will retest the bottom. This is nearer to the $1685 mark.
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On the upside, if we can surpass the 200-day exponential moving average (EMA), it is conceivable that the bullish trend will continue. This does not appear likely at this time, and it will not occur as long as American yields continue to grow. At this point, I believe that gold is due for a bit of a decline, so we must now wait and see how terrible it will get over the following few days.