Gold markets initially fell during the week but tested a major two-year trendline. According to market analyst Christopher Lewis, this suggests that perhaps gold is trying to turn things around, bouncing off the way we have. We have prepared the gold technical analysis of Christopher Lewis for our readers.
“Gold will get better if the problems in the credit markets continue”
Gold markets fell throughout the week initially to see the $1,800 level drop. The $1,800 level is an area that has been important many times, and it’s worth noting that possibly the last few years’ bullish lines are being tested and held so far.
Therefore, I think gold can perform quite well. But that doesn’t necessarily mean it will be easy. Gold will continue to improve if we continue to see problems in the credit markets as it will be a safe haven.
“If it goes below the up trendline, the doors to the downside open”
If we go below the up trendline, this is a significant downtrend can pave the way for movement. Maybe it can reach the $1,750 level, maybe even the $1,700 level.
The $1,700 level for the yellow metal is interesting because we also see the 200-Week EMA here. I don’t think it will necessarily be like this, but it’s something you should keep in the back of your mind.
“Gold can go higher given enough time”
On the upside, if we can break above the 50-Week EMA then we should look at the $1,900 level. possible. The $1,900 level is an area that was previously supported. So it should now suggest that there will be quite a bit of resistance in this general environment.
However, if we can climb into that area, we’re probably looking to hit the $2,000 level. Ultimately, this is a market that I think will rise higher given enough time, but that doesn’t necessarily mean it will be easy.
FOMC minutes will be announced on Wednesday
By the way Kriptokoin.com as we have mentioned in our news, Wednesday On Monday, the FOMC will release the minutes of its May meeting, at which the Fed decided to raise the policy rate by 50 basis points.
FOMC Chairman Jerome Powell said at the press conference, “An increase of 75 basis points is not something the committee is actively considering.” Now, investors will try to catch clues about the Fed’s rate hike policy from the meeting minutes.
