Gold Markets Pullback After Massive Bullish Run

Gold markets have initially tried to rally during the trading session on Friday but gave back gains above the $1900 level. At that point, the market then was a bit exhausted and of course had gotten a bit parabolic, so it is likely that we will continue to see a bit of a pullback in order to possibly build up momentum. Having said that, it is also worth paying close attention to the US dollar because if it starts to spike, that could cause some problems for gold as well. I think more than anything else, we just simply have a market that got a bit too far ahead of itself and needs to correct for a while.

Gold Price Predictions Video 21.02.22

The $1880 level is an area that I would be paying close attention to, because it was previous resistance, and it should now be support. If it fails, we could have a little bit more of a selloff but right now I think we are more likely than not to at least try to hang on to the uptrend, because there are a lot of different reasons that gold rallied. Yes, part of it was based upon Ukraine/Russia problems, but it had been rallying before that and quite frankly I think a lot of it is concern about inflation, something that is not going to go away anytime soon.

A pullback makes perfect sense and should offer a nice buying opportunity as we slammed straight up in the air and into major resistance. The $1920 level will be difficult to break through, so to think that we would just slip through it right away was probably a bit much anyway.

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