Gold: Why Gold Dropped Hard and What is the next Destination?
Updated
during the weekend, we had shared our views on gold might going to drop, and that really happened. from my personal view, I have found 3 reasons behind the Gold's flash crash early market opening.
1. Last week's massive US job market report.
2. Gold was raised when most of the central banks cut their interest rate to support their economy during the pandemic. Now, many central banks are thinking to increase the bank's rate again. August 18, RBNZ is going to hike their bank rate is expected.
3. Timing also may play behind today's Gold's flash crash. The time gold dropped, most of the time flash crashes happen that time. because of thin liquidity. U.S market is closed, UK/European they are in bed, Asian traders aren't out of bed yet. only Australian and New Zealand market is open those are a relatively small market.
So, now the question is, Will Gold Drop More?
Most possibly Yes. after the flash crashes, we have seen before the market goes for a big correction. that really happening in the market right now. This week the U.S has an inflation report to be released. if the come can meet expectation the FED has more chance to rake hike again this year. so, the Gold may drop again.
What about the technical analysis?
technically gold is in a bearish mode we have shared many times. From the present price zone, 1760 is the major resistance. breaking above 1760 is a hard job. in case It breaks above 1760, we may see more upward correction till 1790/1800 price zone. I think 1970/1800 is the perfect price zone for sell entry. as long as the market is below the 1760 price zone, there is still have a chance to sell Gold.
As usual, stop loss should be above the 1840 price zone. and the first target 9s 1725 and final target as we gave our last analysis is 1680/1680 zone. last analysis hit our target and bounced back from the 1680 price zone.
N:B: Don't rush for selling Gold immediately, let the market for correction and chart pattern or any news outcome.
1. Last week's massive US job market report.
2. Gold was raised when most of the central banks cut their interest rate to support their economy during the pandemic. Now, many central banks are thinking to increase the bank's rate again. August 18, RBNZ is going to hike their bank rate is expected.
3. Timing also may play behind today's Gold's flash crash. The time gold dropped, most of the time flash crashes happen that time. because of thin liquidity. U.S market is closed, UK/European they are in bed, Asian traders aren't out of bed yet. only Australian and New Zealand market is open those are a relatively small market.
So, now the question is, Will Gold Drop More?
Most possibly Yes. after the flash crashes, we have seen before the market goes for a big correction. that really happening in the market right now. This week the U.S has an inflation report to be released. if the come can meet expectation the FED has more chance to rake hike again this year. so, the Gold may drop again.
What about the technical analysis?
technically gold is in a bearish mode we have shared many times. From the present price zone, 1760 is the major resistance. breaking above 1760 is a hard job. in case It breaks above 1760, we may see more upward correction till 1790/1800 price zone. I think 1970/1800 is the perfect price zone for sell entry. as long as the market is below the 1760 price zone, there is still have a chance to sell Gold.
As usual, stop loss should be above the 1840 price zone. and the first target 9s 1725 and final target as we gave our last analysis is 1680/1680 zone. last analysis hit our target and bounced back from the 1680 price zone.
N:B: Don't rush for selling Gold immediately, let the market for correction and chart pattern or any news outcome.
Note
We have updated our gold chart and analysis...tradingview.com/chart/GOLD/
2rS7velM-Gold-Price-Forecast-King-Dollar-is-Back-Again/
Note
We have updated our gold chart and analysis ahead of CPI (Inflation Report) 
Note
We have updated our gold chart. Let's check it out here. Don't miss the next opportunity....
Note
We have updated our gold target, chart, and analysis. Please check it out...
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