Gold Markets Trying to Break Out

Gold markets have rallied a bit during the session on Tuesday to break above the $1920 level yet again. That being said, the market continues to see a lot of resistance above there, so I think it is going to be difficult to clear this barrier. You can see that we had originally tried to do it, but ultimately, we continue to see a lot of noise and therefore I think what we have here is a market that is going to try to go higher over the longer term, but it does not necessarily mean that is going to be easy. We have a significant amount of short covering going on if we do take off to the upside, but it will not necessarily be immediate.

Gold Price Predictions Video 02.03.22

The gold markets are rallying based upon a whole plethora of issues, not the least of which of course is the war in Ukraine. We also have inflationary concerns out there as well, so that will have a certain amount of influence on what happens next. Ultimately, I do think that this is a market that will eventually go looking towards the $2000 level, but it does not necessarily have to get there overnight. I think this is a market that is going to be very noisy due to the massive amount of geopolitical and economic noise, and therefore I think it is something that you need to be cautious trading and be cautious, I mean that you need to keep your position size reasonable. It does look as if this remains a “buy on the dips” scenario, all the way down to the $1880 level.

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