Gold Markets Remain Volatile

Gold markets have gone back and forth during the course of the trading session on Tuesday as we have seen a significant amount of resistance near the $1850 level, and of course support near the $1830 level. We are going to go back and forth during the course of the trading session not only on Tuesday, but more likely than not most of the day on Wednesday. After all, we are waiting for the results of the Federal Reserve meeting and of course the statement. If we get a “less hawkish” statement, that could very well determine a boost gold.

Gold Price Predictions Video 26.01.22

On the other hand, if they sound just as hawkish as they did previously, it is very possible that we could see a lot of confusion in the markets, and therefore I think you are probably better off waiting until we get the result of the Wednesday candlestick at the clothes before you put money to work. It certainly looks as if we are bullish, so I do favor the upside, but I also recognize that if we were to see a lot of volatility, you could lose quite a bit of money through a lot of back and forth and noisy behavior.

After all, the gold markets are thin at times, so you could see a lot of damage to your account if you have too much put into it. At this point in time, at the very least you should keep your position size small, to mitigate any type of significant damage that could happen. In general, this is a market that looks as if we are ready to go higher, but we have one more landmine to sidestep in the process.

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