In Tuesday’s trade, gold prices rose a little, but they quickly reversed their gains. The market is more than likely to continue its downward trend, with the $1750 level a place where we’ve seen sellers enter the market a couple of times.. In the end, I believe that this market will continue to exhibit choppy behavior, mainly because of the strength of the US dollar. That will continue to have a negative impact on the gold and other commodity markets.
We might expect gold to fall to as low as $1700 if we break below the candle’s bottom line. We must keep an eye on the $1700 barrier since a break below it might lead to much more aggressive selling, as I believe. To sum it up, I don’t think the market will turn around anytime soon, at least not until we reach well beyond the $1800 barrier, and that would almost probably be due to a huge turnaround in the bond markets.
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Keep a watch on your position size because this chart shows a lot of noise, and it’s likely to continue. You don’t want to be highly exposed in this market since it’s probable that we’ll continue to see significant noise and risk regardless of the next move.