Gold Markets Pull Back as Russian Troops Do Same

Gold markets have tried to break above the $1800 level but turned around to show signs of weakness almost immediately. After that, we have the Russian troops pulling back from the Ukraine border, and then of course takes out a lot of the “fear trade.” That being said, the market is likely to continue seeing a lot of volatility, but now that we have reached into the gap below, the question is whether or not the support comes back into the picture to let things from here? It will be interesting to see how this plays out, because quite frankly the gold market got so overbought that it would not surprise me at all to see a little bit of a continued drop from here.

Gold Price Predictions Video 16.02.22

At the very least, I think we need to slow down as simply going straight up in the air is not very healthy for any market. A lot of the movement that we have seen in this market over the last couple of days has been more or less a fear trade, so I think we are likely to try to “reset”, before we can either go higher or perhaps go back towards the 200 day EMA.

The size of the candlestick is of course something worth paying attention to, as the size of it is rather alarming. Breaking down below the bottom of the candlestick is of course yet another indication that we are going even lower, and of course pay attention to the interest rates in the United States, because if they start to spike rapidly, that could work against the gold market.

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