Gold Markets Bounce From Support

Gold market technical analysis

Gold markets have fallen a bit during the trading session on Monday to reach the $1920 level before bouncing a bit. This is an area that begins a rather significant amount of support, as it extends all the way down to at least the 50 Day EMA, if not the $1880 level. Because of this, I think it is more likely than not that we see this market bounce a bit from here. Whether or not that is sustainable will be a completely different question, because we have recently formed a massive “double top” just underneath the $2100 level.

Breaking above the highs of last week would be a good start and could open up the possibility of a move towards the $2000 level. This is an area where I would expect to see a little bit of hesitation based upon the psychology of the round number, so pay close attention to that. Breaking above there could open up the possibility of reaching the highs again, which may need a little bit of a boost to get to. After all, the initial surge higher was based upon the Russians invading Ukraine, which obviously was a major “risk-off event.”

While that has not changed, meaning that the Russians are still in Ukraine, the reality is that the markets have gotten somewhat used to it. The war does not look like it is going to expand to the other countries in the region so that in and of itself could help alleviate some of the fear-based trading that we had seen just a few weeks ago. With this, I believe that even if we do reach the highs, it will be in a much more stable manner that previous attempts.

Gold Price Predictions Video 29.03.22

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