Gold Markets Continue to Consolidate at Highs

Gold markets have rallied a bit during the trading session on Wednesday, as we continue to see a lot of fear out there. Furthermore, there is a lot of concerns about inflation, so of course gold is getting a bit of a bid. The question now is whether or not the $1880 level will continue to offer a bit of a ceiling? I think at this point in time it probably will in the short term, but if we get some type of major concern out there and people start running towards safety, that could cause this market to break out.

Gold Price Predictions Video 17.02.22

Keep in mind that there is still the area that we formed a gap at a couple of days ago, so I think that will be massive support. Ultimately, if we do see this market break down, I think that anything below the $1840 level would be a rather negative. At that point, I would expect the $20 drop. On the other hand, if we can break above that aforementioned $1880 level, then it is likely that we could go looking towards the $1900 level rather quickly, perhaps even become more of a “buy-and-hold” type of situation where we go as high as $2100 over the longer term.

Either way, you need to keep in mind that the market is highly sensitive to interest rates and of course risk appetite in general. Because of this, it is a situation where you would have a lot of noise, so you need to keep your position size reasonable until we make a confirmed breakout or breakdown.

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