Throughout Thursday’s trading session, the gold market oscillated between $1850 and $1850. Finally, I believe that a great deal of attention will be paid to this region, and I would also consider the $1825 level as a potential support level. The 200-Day Exponential Moving Average (EMA) is located around $1808 and is a prominent trend indicator, so it is something that a lot of people will be paying close attention to.
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The gold market is in grave danger, in my opinion, if we were to breach the $1800 level. For the previous few weeks, there has been a great deal of selling pressure, as seen by two enormous red candlesticks followed by a number of inverted hammers. To put it another way, gold has no desire to participate in the activity. If we reverse course and break above the $1900 barrier, a great deal of pessimism would be removed, and there is a chance that gold would return to its previous highs.
But, I believe that we will eventually attempt to go back and forth and construct a bit of a foundation. I don’t believe we’ve reached that point yet, particularly as the US currency continues to exhibit signals of strength. As long as the dollar remains strong, gold is likely to continue to suffer, particularly if bond market yields exhibit positive behavior.