Gold markets continued to see an influx of money into the US dollar and the bond market in general, but fell lower during Friday’s trading session to $1,811. However, according to one analyst, the market may see a scenario where gold falls below the 200-day exponential moving average (EMA) and then falls below the $1,800 level. Here is the gold price prediction from analyst Christopher Lewis…
Gold price claim from analyst: It may fall to this level
FXEmpire analyst Christopher Lewis points out that if the scenario he mentioned above occurs, a significant downward movement in the market may begin. It is also worth noting that “Friday’s candlestick has shown a spectacular decline. In fact, if we close at the absolute bottom of the daily range, that means we have to continue to follow the downside.”
However, if we can go back and rally, we need to break past the top of the candlestick for Friday’s trading session to have any real hope of seeing the market rally for a longer term move. “The market would then go right to the $1,860 level where the gap started,” Lewis says. Noting this level in particular, he says, “There has to be tremendous resistance, so if we break that level, then it’s possible for us to truly look at the higher levels and continue to go much higher overall.”
Declining scenario for gold
“However, the market will likely continue to depend on what the US dollar is doing in general, so I think the scenario we see here is one that could be very distressing for gold. If we leave here, we will look at the $1,750 level. “This is an area that is both fulcrum and resistance, and so I think it will be the next magnetic objective.”
As we have previously reported, the speeches of US Fed Leader Powell on Wednesday and some data from the US on Thursday had increased the gold price. For more gold news Cryptocoin. com “Watch Out for These Developments and Levels Next Week for Gold Prices!” You can check our article.