Gold Markets Continue Breakout
Gold markets pulled back initially during the trading session on Thursday but found enough support near the $1830 level to turn things around and show signs of life again. Because of this, the market looks as if it is trying to break out towards the upside, perhaps taking on the recent highs. Ultimately, this is a market that I think you continue to buy on dips, but if we were to break out above the $1880 level, this is a market that could go much higher.
Gold Price Predictions Video 21.01.22
Alternately, if we break down below the $1835 level, we could end up going back into the consolidation area, but I also think that the 50 day EMA is starting to curl bit higher, and that could offer a significant amount of support as well. The $1800 level is sitting just below there, and that of course comes into the picture also. With this, I think it is only a matter of time before buyers would come in and try to pick up a bit of value as gold is getting a boost due to the inflationary pressures, and quite frankly is due for a rally.
I do not have any interest in shorting, at least not at this point as the move has been so strong and relentless. Each low successively continues to get higher, which is of course exactly what we want to see at a situation like this. Ultimately, the US dollar could have its say here as well, but I think bigger forces are at play currently, pay close attention to inflationary pressures around the world. If inflation has started to peak, then we will have to pay attention to the bond yields.
For a look at all of today’s economic events, check out our economic calendar.