Gold Markets Testing Support

Gold markets have fallen a bit during the trading session on Tuesday to reach down towards the $1920 level. This is an area that has been important more than once, so it is not a huge surprise to see the market return to it. If this area can hold, it may give gold the opportunity to continue the long run higher than we had previously seen. Obviously, the previous move had been overdone so it does make a certain amount of sense that we take a bit of a breather in this general vicinity.

Gold Price Predictions Video 23.03.22

The support level that I see underneath is more or less a “zone” that extends down to the $1880 level. The $1880 level had previously been important as well, and of course, we just have the 50 Day EMA cross above there. All of this bodes well for the gold market longer term, but we may have some noise between now and then to deal with. I ultimately believe that gold probably goes higher, but I also have to recognize that if we were to break down below the $1880 level, one would have to assume that the trend is broken.

If we can turn around and break above the $1950 level, then I believe that gold goes looking towards the $2000 level rather quickly. At that point, there is a certain amount of psychology that probably comes into play, and therefore you need to assume that there will be a lot of noise. Breaking above the $2000 level opens up the possibility of going back to the recent highs, which of course we reached far too quickly.

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