Gold Markets Break Major Barrier

Gold markets have exploded to the upside during the trading session on Thursday as further tension around the Russia/Ukraine border situation has people looking towards safety trades. That being said, the market is very likely to continue being volatile, so would not surprise me at all to see a sudden pullback. I am not calling for that, I am just saying that the market is so concerned about the latest headline now that pretty much anything is possible. When markets get out of control like this, the most important thing you can do is protect your account. In fact, I do not even advise trading in this type of environment.

Gold Price Predictions Video 18.02.22

Having said that, I know most of you will refuse to listen to that advice. So please listen to this advice: keep your position size small and protect yourself. Yes, it is obvious that the upside is much stronger than the downside, but all it would take is for Putin to pull back his troops, and gold will probably drop $50. That is not to say that it would kill the overall uptrend, but a lot of the “fear trade” would instantaneously fall apart.

On the other hand, it is just as possible that we may finally break above the $1900 level and go looking towards higher levels. The $1920 level is the next barrier, and then after that we could have a run towards 2100. I think that eventually happens, but it does not have to happen now and that is the point of my analysis. If you are going to buy gold, hope for a little bit of a pullback towards the $1880 level in order to find value.

For a look at all of today’s economic events, check out our economic calendar.