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Gold Markets Continue to Struggle for Direction for the Week

By:
Christopher Lewis
Published: Jan 28, 2022, 17:32 UTC

Gold markets initially tried to rally during the trading week but gave back significant gains to slice lower and through the 50 week EMA.

Gold Markets Continue to Struggle for Direction for the Week

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Gold markets have initially tried to rally during the course of the trading week, only to turn around and fall apart. That being said, the market has broken through the 50 week EMA, something that will attract a certain amount of attention. Because of this, it is more likely than not we will go looking towards $1750 level underneath, which of course has been significant support. At this point in time, if we break down below there, then I think gold got further to fall.

Gold Price Predictions Video 31.01.22

On the upside, we could continue the overall consolidation that we have seen, but you are going to be better off trading and upside move on a short-term chart, perhaps the daily or even the hourly as there is most certainly a lot of volatility out there and of course US dollar strength in general. As long as that is going to be the case, gold is going to be a messy place to be. Gold is very volatile under the best circumstances, so you need to be very cognizant of what is going on with the US Dollar cap Index, and of course interest rates in America. As interest rates climb, that typically makes gold a lot less attractive.

I think we are stuck in a range for the short term, as traders are trying to figure out what to do about inflation on one hand, and the Federal Reserve on the other. As long as that is the case, it is going to be difficult for gold to make a serious move. In general, I think you probably are looking at more of a messy back-and-forth market.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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