Gold Markets Give Up Early Gains for the Week

Gold markets have initially tried to rally during the course of the trading week, reaching towards the $1975 level before pulling back to form a shooting star. Ultimately, when you look at this chart, you can see clearly that we had attempted a major breakout but now find ourselves sitting on top of a potential major support level in the form of $1880. As an area that has been previous resistance, does make a certain amount of sense that it could offer support. However, if we break down below the bottom of the candlestick from the past week, that could send this market towards the 50 week EMA, closer to the $1808 level.

Gold Price Predictions Video 28.02.22

If we do get a flareup in Ukraine or some other situation like that, we could blow through the top of the shooting star, but I think this is more or less a “blow off top”, especially when you look at the daily or even hourly charts. We desperately needed that in order to turn things back around I think, so now the question is whether or not we get some type of panic to make gold go higher or not. Right now, I suspect that we are going to ease right back into the previous consolidation area.

I think the only thing you can count on is that we are going to go back and forth rather violently, especially due to the fact that there are so many concerns about not only the Ukraine invasion, but also the fears of inflation around the world. Position sizing is going to be the most crucial thing you can pay attention to.

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