Gold Markets Looking Set to Recover

Gold markets have gapped higher to kick off Thursday and then shot towards the $1950 level. This is an area that I think people will be paying close attention to, but at this point in time, we probably go looking towards the $2000 level on a move above there. Keep in mind that the gold market had been overdone for a while and most certainly overbought, so the fact that we had this vicious pullback towards the 50 Day EMA makes quite a bit of sense.

Gold Price Predictions Video 18.03.22

The 50 Day EMA tends to attract a certain amount of technical trading anyway, and now it looks as if it is in fact going to cause the bounce that could send this market back towards the highs. On the other hand, if we were to break down below the $1880 level, then we could go looking towards the 200 Day EMA.

This is a market that recently made a bit of a double top, so the recent highs are something that we need to pay close attention to if we get back to that area, but I do not think we get up to that area as rapidly as we did previously. After all, that is not a very healthy move and of course, a lot of that had to do with the invasion of Ukraine by Russia. I do believe that ultimately this market will try to go much higher over the longer term, due to inflation and of course a lot of geopolitical concerns. The gold markets might be stymied by the US dollar a bit from time to time, but I do think they have further to go.

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