Gold Price Prediction for the Week Ahead – Gold Markets Continue to Plunge

As the U.S. dollar continues to function like a wrecking ball that destroys practically everything, gold markets have declined significantly during the week.

As the U.S. dollar continues to gain across the board, gold markets have experienced a sharp decline this week. Ultimately, as long as the US currency remains strong, this market will continue to struggle with the idea of holding onto gains. Furthermore, a significant support level has been broken, so I believe gold has further to go. The $1680 level had been significant for quite some time, and now that we are well below it, I cannot see how gold can continue to advance. Ultimately, this is a market in which I will seek shorting opportunities on every bounce, and it is probable that we will see a great deal of them.

The $1500 level below is a reasonable beginning target, but I would not be surprised if the market also broke below that level. The magnitude of the candlestick is reasonable, and it suggests that prices will decline in the long run. However, I am aware that the gold market is somewhat volatile and can be quite noisy at times. In light of this, I believe you should exercise extreme caution and acknowledge that you should not immediately go in with both feet.

You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.

This market, given sufficient time, could even fall to $1,200, and I do not believe it will change its attitude until the Federal Reserve does. It does not appear likely in the near future, so I anticipate continued selling pressure. In light of this, I maintain my bearish stance.

Leave a Comment