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Gold Markets Looking to Break Out

By:
Christopher Lewis
Published: Mar 24, 2022, 14:59 UTC

Gold markets have rallied a bit during the trading session on Thursday to show signs of strength, breaking above the $1950 level.

Gold Markets Looking to Break Out

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Gold markets have rallied during the course of the trading session on Thursday to break above the crucial $1950 level, a sign of strength. Ultimately, this is a market that I think eventually goes looking towards the $2000 level. This is an area that is a large, round, psychologically significant figure, and therefore it makes sense that we would target it. The $2000 level will be a bit of a fight, but we have already blown through there previously, so I think that it makes a certain amount of sense that we will eventually break above there.

Gold Price Predictions Video 25.03.22

When you look at this chart, you can see easily that the 50 Day EMA has offered dynamic support, and now that it rises towards the $1920 level, it shows even more proclivity to offer massive support in that area. All things being equal, the market has been very bullish for a long time, but it had gotten so far ahead of itself that it makes sense that we have seen a significant breakdown. That significant breakdown is now starting to be looked past, and now I think the buyers are going to continue to see opportunity in this market.

This will be especially true in this type of environment where quite frankly the market seems to be on edge no matter what happens. The worsening outlook for risk appetite will continue to drive gold higher, and I will be looking for long positions in this market as long as we have all of this fear. I simply do not see where that disappears anytime soon, so I assume that buying on the dips will continue to be the way forward.

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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