Gold Markets Threatening Massive Move

Gold markets initially gapped higher to kick off the week, pulled back to fill that gap, and then shot straight up in the air. Quite frankly, gold continues to be extraordinarily strong, and it now looks as if it is ready to go looking towards the $2000 level. There are a whole host of reasons to think why gold may rally, not the least of which would be geopolitical concerns. The war in Ukraine continues to cause a lot of nervousness, and people of course have been running towards safety assets as a result.

Gold Price Predictions Video 07.03.22

It is worth noting that the gold markets were rallying before any of this happened, so the fact that interest rates are starting to come into play is worth noting as well. Quite frankly, there is no scenario in which I would be a seller of gold although I recognize that if the shooting in Ukraine slows down or even stops, that would obviously be very welcomed, and would have a lot of the “safety trade” taken out of this market. At that point, I would anticipate somewhere near the $1880 level would be an area where bargain hunters come back.

If we break down below there, then I can reassess the entire situation but for me, I believe this market is trying to go to the $2000 level, and every time we dip should be thought of as a potential opportunity as it has been so obviously bullish over the last several weeks, even before the invasion.

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