Gold Markets Continue to Search for Support
Gold markets have gapped higher to kick off the trading session on Monday, and then went back and forth to show signs of hesitation. The $1780 level has offered support more than once, and I do believe it continues to be the same going forward. Because of this, I think we will continue to see a little bit of a bounce around over the next couple of days, which does make a certain amount of sense when you take a look at the economic calendar with so many central banks meeting over the next week.
Gold Price Predictions Video 01.02.22
If we do break down below the $1780 level on a daily close, then I think gold has further to go to the downside, perhaps showing a big move brewing. However, if we were to turn around and break above the 200 day EMA, which currently sits at the $1802 level. If that ends up being broken, it is very likely that we could go looking to fill the gap above. That being said, keep in mind that gold is very noisy to say the least, so it does make a certain amount of sense that we would see choppy behavior with so much headline risk out there.
Pay attention to the interest rate markets, because if interest rates start to spike again, that could work against the value of the gold markets, but obviously it comes down to the rate of change as well. I think the only thing you can count on is short-term volatility, which will more than likely lead to multiple short-term trading opportunities. Longer-term moves are probably still off the table in the next few days.
For a look at all of today’s economic events, check out our economic calendar.