Gold Markets Have a Tough Week

Christopher Lewis
Published: Mar 18, 2022, 15:56 UTC

Gold markets have broken down significantly during the course of the week to go looking towards the $1890 level before bouncing.

Gold Markets Have a Tough Week

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Gold markets have fallen rather hard during the trading week to reach the $1890 level before bouncing a bit. At this point, the market looks as if it is trying to fight against the shooting star and potential “double top” that formed during the previous week, but I think at this point we are looking at this as a tough market to trade, and at this point, it looks as if we are trying to get back to the $2000 level.

Gold Price Predictions Video 21.03.22

If we break down below the bottom of the candlestick, and perhaps more importantly the $1880 level, then that would be a bit of trouble. At this point though, I think we are trying to form a bit of a range in order to figure out where we go next due to either momentum or some type of event/announcement. Ultimately, this is a market that is going to move based upon the US dollar, and inflation as well. In other words, this is going to be a very noisy market that causes a lot of headaches if you are not cautious about your position size. Nonetheless, this is a market that eventually will try to get to the highs again, but if we were to break down below the $1880 level, then it is possible that we could go looking towards the 50 Week EMA.

In that scenario of weakness, it would more than likely have to do with a lot of US dollar strength and perhaps some type of peace deal being signed between the Ukrainian and Russian governments. Barring then, I think that gold will continue to be rather attractive.

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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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