Gold Markets Have Tough Week

Gold markets got hammered during the course of the week and now look as if they are ready to test support underneath. Ultimately, this is a market that I think given enough time will probably put a serious beating on the support level, and if interest rates in the United States continue to spike, gold will certainly be hammered as a result. The $1780 level is minor support, which opens up a move towards the $1775 level, followed by the $1750 level.

Gold Price Predictions Video 07.02.22

To the upside, we need to break above the $1850 level to see real momentum to the upside, and if you look at the longer-term chart you can see we have simply been grinding sideways forever. With this being the case, the market is likely to continue seeing choppy behavior, even if we do get a bit of a move. Quite frankly, gold is far too manipulated half of the time for me to get overly excited, so this is a market that has to be traded more or less from a short-term perspective than anything else from what I can see. With that being the case, I think it is going to be very difficult for longer-term traders to do much with this, as it has essentially gone nowhere for well over year.

Having said that, if interest rates suddenly start spiking it is going to be toxic for gold, and we may finally get a bigger move, albeit to the downside. Sooner or later, the market will continue to see plenty of reason for this market to go lower, as the Federal Reserve is essentially stuck in a situation where they have to rate hikes due to political pressure.

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