The gold market initially gained on Wednesday, although it is still having trouble over $1800. As a result, it is extremely probable that the market will continue to experience some trepidation, especially given how unfavorable a sign the candlestick during Tuesday’s trading session was. Looking at this candlestick, it appears that we may also be attempting to shape it something like a shooting star. At this point, I believe it’s quite likely that we withdraw, as I had mentioned yesterday since we had reached a critical moment in the “market memory” that many people would be closely monitoring. As a result, the market is probably going to continue to exhibit a “fade the rally” mentality, at least in the near future.
Pay close attention to the bond market since American interest rates are expected to climb further and have a significant negative impact on gold prices. It’s also important to take into account the influence that a stronger US currency also has. Given that the $1750 level was previously a critical resistance level and that this market would continue to favor sliding back down to it, I believe it makes perfect sense that we would need to retest it.
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If we go again below $1750, it’s likely that the gold market will continue to decline and test the $1680 level, where alarms were previously heard. On longer-term charts, that region is critical, therefore we would need to pay close attention to that change.
Alternately, if we were to break over $1815, gold would probably continue to climb and finally change the general trend. We would require a considerable decline in American rates and maybe in the US dollar’s value.