Gold Price Prediction: Gold Markets Continue to Fall

The gold market has declined slightly during Thursday’s trading session as investors anticipate Friday’s employment report.

The gold market declined throughout Thursday’s trading session, as it has been doing for some time. The market is likely to exhibit a great deal of erratic behavior at this time, and as we approach the $1700 level, there will be a substantial amount of support that extends down to the $1680 level. Consequently, the market is expected to continue to experience a great deal of volatility, but if gold prices go below $1680, the gold market might begin to unravel significantly. In such a scenario, I estimate gold will hit the $1,500 mark.

Remember that the release of the jobs report on Friday will have a significant impact on what happens next with the US dollar and interest rates. Clearly, this has a significant impact on gold, therefore I believe we may be setting up for a short-term rebound, but it is impossible to anticipate a change in trend at this time. The $1750 level is a previously significant area and the bottom of the bearish flag that we broke through.

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Regardless, I believe this market will test its lows sooner or later; the question will be whether or not they can hold. The market will continue to be volatile, but I would not chase it to the downside; rather, I would begin shorting rallies when they arise. I am not interested in purchasing gold, at least not at this time. The Federal Reserve will continue to support the U.S. dollar, and gold will undoubtedly suffer as a result.

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