Gold Markets Continue to Look Strong as We Break Through Resistance
Gold markets have exploded to the upside, breaking above the crucial $1835 level, an area that has been significant resistance previously. That being said, the market looks as if it is trying to continue the overall upward pressure, especially as the bond market continues to cause a lot of headaches for traders around the world. Now that we are breaking above the $1835 level, it is very likely that we could go looking towards $1850 level. That being said, I would anticipate a certain amount of volatility, but that is normal with the gold market. Quite frankly, the market will continue to take its cues from the bond market as per usual, as the bond market drives most things. Ultimately, I do think that this market probably continues to go higher though.
Gold Price Predictions Video 20.01.22
If we break down below the $1820 level, I think we could go looking towards $1800 level next, which is where the 200 day EMA sits. That being said, this was a major breakout and I think it will have plenty of follow-through. Whether or not we go straight up in the air is a completely different question, but at this point in time I certainly would not bet against the gold market. Gold tends to be very volatile, very choppy and then suddenly takes off, which is exactly what we are seeing here. Until something changes quite drastically, I have no interest in shorting this market and I do believe that it eventually goes much higher. With inflation roaring, it makes sense from a lot of old traders that they pile into gold as well.
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