Gold Markets Sitting on Support

Gold markets have initially found the $1920 level to be supportive over the last couple of candlesticks, and therefore it appears that the phenomenon of “market memory” is coming back into play. It is worth noting that we had a nice bounce several sessions ago, from just above the 50 Day EMA. From a technical analysis standpoint, that does tend to suggest that we are going to find buyers and bounce from here.

Gold Price Predictions Video 22.03.22

Ultimately, this is a market that is going to be very noisy, but I do think that we are trying to form a bit of a base. If we can break above the $1950 level, then it would almost certainly send a bunch of new momentum into the market to the upside. Conversely, if we were to break down below the 50 Day EMA, then we will challenge the $1880 level underneath, which had been significant support previously. A break of that would more likely than not bus the entire trend and send gold much lower. While I do not see this happening, it would more than likely have something to do with the US dollar strengthening.

I would anticipate that there could be a significant selloff in gold if there is a cease-fire in Ukraine, but that is more or less going to be a bit of a “knee-jerk reaction” and is probably something that would only end up offering value to the trader who was willing to wait it out. Regardless, it looks as if we have a fight on our hands, so I do not expect to see huge moves in the short term, barring news that shakes the market of course.

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