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Gold Markets Very Noisy

By:
Christopher Lewis
Published: Feb 22, 2022, 16:32 UTC

The gold markets went back and forth during the course of the trading session on Tuesday to test the upper resistance barrier before dropping.

Gold Markets Very Noisy

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Gold markets are very volatile during the trading session on Tuesday, as we have initially shot towards the $1920 level, before pulling back after tensions seem to be waning. Furthermore, gold markets have gotten a bit parabolic, so it is not a huge surprise to see that we are struggling to hang on to gains at this point. When you look to the left, you can see there was a significant amount of noise, so breaking above there it probably needs at the very least a little bit of momentum building, if not some type of event.

Gold Price Predictions Video 23.02.22

The $1880 level underneath should continue to be support, and therefore I think a lot of people will be paying close attention to it. If we were to break down below there, the market could very well struggle in general. At that point, I would anticipate that the market could drag much lower. At that point, we could be talking about $1850 rather quickly.

It will be interesting to see how this plays out, but regardless we are a bit overdone, and a pullback is probably healthy. Keep in mind that markets cannot go straight up in the air forever, so it does make a certain amount of sense that we would continue to see a little bit of hesitation. That being said though, if we were to break above the $1920 level, then we are likely to go absolutely bonkers and send this market much higher. At that point, the market would go looking towards the $2000 level eventually. I do think we get there based upon inflation, but I do not think we get there as quickly as the market has been behaving as of late.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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