Gold Markets Have Further Pressure

Gold markets have gapped lower to kick off the trading session on Wednesday as the FOMC meeting is going to be very important, and the first 25 basis point rate hike in ages. With this being the case, it is very likely that a lot of people will be not only expecting that but paying close attention to the statement afterward as it could give us a little bit of a “heads up” as to where we are going next. After all, a lot of people are concerned about whether or not the Federal Reserve is going to continue tightening.

Gold Price Predictions Video 17.03.22

At this point, the market is more than likely going to continue to see a lot of volatility, but we are getting to the point where one would have to assume value hunters may come back into the picture. The 50 Day EMA is currently at the $1887 level and sloping higher. This could be dynamic support going forward, so pay close attention to how we behave if we get down there.

It is also worth noting that the $1880 level has been supported more than once, and therefore it is likely that we will see buyers in that area as well. If we were to break down below that level, then I think gold falls apart and goes much lower. At this point, it is possible that gold would fall all the way down to $1800, but obviously, this will be a major change in attitude, despite the fact that we have pulled back rather drastically. The market had been overdone at one point, so it makes a certain amount of sense that we need to pull back and find buyers. Now we need to see if they are here.

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