Gold Markets Find Buyers on Dips

Gold markets have initially pulled back from the crucial $1950 level during the trading session on Wednesday to reach down towards the crucial $1920 level. That is an area that has been supportive more than once, so it does make a certain amount of sense that we would see buyers come back in. The market is obviously in a very strong uptrend, and therefore I think it does make quite a bit of sense that we would see a bit of value hunting getting into the picture.

Gold Price Predictions Video 03.03.22

On the upside, the $1975 level should be thought of as a target and/or resistance based upon what we have seen during the panic candlestick of Thursday from last week. That is an area that I would anticipate a lot of people would get heavily involved in, and if we can break above there then it would be likely that gold would go racing towards the $2000 level. This does make a certain amount of sense considering all of the geopolitical issues and inflationary fears out there.

While some people will look at the US dollar and suggest that gold will not be able to rally at the same time, the reality is that both can rise depending on what the circumstance is. A lack of economic growth coming down the pipe, and inflation at the same time because of something known as “stagflation.” While the market is a little bit overbought at this point, traders will continue to look at pullbacks as an opportunity to pick up “cheap gold”, as value hunters and people who have missed this move will continue to be attracted to it.

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