Gold Markets Pull Back to Test Previous Resistance

Gold markets have pulled back to test previous resistance in a bid to find support in what has been an extraordinarily volatile market. At this point, it does look like we are trying to hold but quite frankly you cannot get too excited quite yet, because we have seen such a huge move in multiple markets, not just this one. There is a lot of fear out there and while that can help gold, it does not necessarily have to help gold. Because of this, I would be very cautious at this point in time and keep my position size relatively small but if we can break above the highs of the Thursday candlestick then I will start to add and get a bit more aggressive.

Gold Price Predictions Video 24.01.22

To the downside, I believe that the 50 day EMA near the $1807 level will continue to be important, so I will be paying close attention to it. That should offer a lot of support based upon that impulsive candlestick, but a lot will come down to the US dollar and treasury markets as per usual. Because of this, I am taken a bit of a breather when it comes to trading gold from a short-term perspective, and I am looking for a bigger term type of move. I do think that gold has something to prove, and if we can continue the upward pressure we could go as high as $1875. After that, then it becomes much more of a “buy-and-hold” type of situation.

If we break down, then it is possible we could be looking at a situation where we see the markets go looking towards the $1775 level, which then opens up the “trapdoor” to much more heavy selling.

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