As long as US interest rates remain high, it will be difficult for gold to find a real bullish base. Gold The gold market is only marginally higher during Thursday’s trading as we continue to hold a strong support level. Right now it looks like we’re trying to figure out if it’s a „double bottom”, but I think it’s too short to say. Ultimately, if we break below this general close, it is likely that gold will continue its decline much lower. I think it’s only a matter of time before we see breakdowns. However, this does not necessarily mean that we have a short-term rebound. Advertisement It’s a new week, are you ready for a new broker? Open an account with a top broker TRADE NOW Gold has a huge negative correlation with the US dollar and of course US interest rates. As long as US interest rates remain high, it will be difficult for gold to find a real bullish base. Gold fared significantly better against other currencies, but it was particularly battered against the dollar. The market is likely to drift lower If we continue the rally from here, the $1700 level along with the $1680 level would be a very interesting area. The 50-day EMA is around $1,700 and is on the downside. This is an area where I think you will see a lot of dynamic resistance. Additionally, you also have a downtrend line in test, so sellers will likely continue to get plenty of time. To be honest, if gold piles up here, I’m not a buyer, I’m looking for an opportunity to sell. If we break below the possible „double bottom”, we will probably test the $1600 level, followed by the $1500 level. The $1,500 level is an area with a lot of psychology, so I expect some battle in that area as well. Either way, it’s a market that I think has a lot of negativity, and I think it’s probably only a matter of time before we see the company really throw things into a massive slump. Only when the Fed has reason to change its stance do I think the market is ready to reverse.