Gold Markets Slam Into Previous Resistance

Gold markets have fallen pretty significantly during the trading session on Tuesday to show signs of hesitation again. That being said, the market is more likely than not going to have to find some type of support between the $1920 level, and the $1885 level. This is a market that had recently broken out above this major resistance region, so it needs to hold in order to prove itself as being a significant breakout.

Gold Price Predictions Video 16.03.22

There are a lot of questions now as to whether or not we just put in a major “double top”, which would be yet another time when gold failed to truly take off. Yes, it has been a strong run and it is a bit early to call the end of the trend, but quite frankly the last couple of sessions have been extraordinarily negative. At this point, gold needs the Federal Reserve to save it.

The Federal Reserve has a meeting that is going on currently, and there will be a news conference at the end of the day on Friday after the announcement. We already know that they are going to raise interest rates by 25 basis points, but the question will be what their tone is after the announcement. If they are somewhat dovish, that could be extraordinarily strong for gold. On the other hand, if they remain very hawkish, that could cause issues for the market. In other words, I think that most people are simply holding their collective breath for the next 36 hours or so.

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