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Gold markets are very volatile during the trading session on Tuesday, as we have initially shot towards the $1920 level, before pulling back after tensions seem to be waning. Furthermore, gold markets have gotten a bit parabolic, so it is not a huge surprise to see that we are struggling to hang on to gains at this point. When you look to the left, you can see there was a significant amount of noise, so breaking above there it probably needs at the very least a little bit of momentum building, if not some type of event.
Gold Price Predictions Video 23.02.22
The $1880 level underneath should continue to be support, and therefore I think a lot of people will be paying close attention to it. If we were to break down below there, the market could very well struggle in general. At that point, I would anticipate that the market could drag much lower. At that point, we could be talking about $1850 rather quickly.
It will be interesting to see how this plays out, but regardless we are a bit overdone, and a pullback is probably healthy. Keep in mind that markets cannot go straight up in the air forever, so it does make a certain amount of sense that we would continue to see a little bit of hesitation. That being said though, if we were to break above the $1920 level, then we are likely to go absolutely bonkers and send this market much higher. At that point, the market would go looking towards the $2000 level eventually. I do think we get there based upon inflation, but I do not think we get there as quickly as the market has been behaving as of late.
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This article was originally posted on FX Empire