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Gold Markets Go Parabolic

By:
Christopher Lewis
Published: Mar 8, 2022, 16:31 UTC

Gold markets have shot straight up in the air during the course of the trading session on Tuesday as we have broken above the $2060 level.

Gold Markets Go Parabolic

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Gold markets have gone parabolic again during the trading session on Tuesday to reach above the $2060 level. Quite frankly, at this point in time, I would anticipate that gold should see some type of massive pullback. Ultimately, this is a market that I think needs to crash towards the $2000 level, because markets cannot go straight up in the air forever. Eventually, you run out of buyers, and chasing the market at this level would be very difficult to do. This is essentially where we topped out at previously, so I do think there is a little bit of a barrier here.

Gold Price Predictions Video 09.03.22

I am looking at a market that desperately needs to pull back in order to make it attractive. I cannot in good faith by this market right now, but I certainly would not want to short it. Shorting it would be a bit of dangerous trade, although I certainly expected to fall from here. Nonetheless, I think we could eventually break out above the highs, but I think it is more or less a situation where we have gotten too far ahead of ourselves at this point. We have to pull back in order to build up a little bit of momentum. At this point, I think the market may show itself to have gotten out of control, which almost always corrects.

I have no scenario in which I am selling gold quite yet, but a move like this sometimes ends up being the “blow-off top” that a lot of people look for. It is far too early to call that now, but we clearly can see just how out-of-control things are.

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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