Christopher Lewis
Add to Bookmarks

Gold markets have gone back and forth during the trading session on Wednesday, as we have recently seen interest rates in the United States spike, causing havoc in the precious metals complex. After all, the idea of clipping coupons in a higher interest rate environment is much more palatable than paying for storage when it comes to gold. Nonetheless, we have seen a monster day during the Tuesday session, so now the question is whether or not we can see some type of follow-through?

Gold Price Predictions Video 11.03.21

At this point in time, the market breaking above the top of the range for the trading session on Wednesday does open up the possibility of a move towards the $1750 level, which is a major barrier. Breaking above there then could see gold taking off. Having said that, it is going to take a significant amount of momentum to make that happen so keep that in the back of your mind.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

On the other hand, if we were to break down below the bottom of the lows from the Tuesday and Wednesday candlesticks, that would open up a “trapdoor effect”, perhaps sending gold down to the $1550 level over the longer term. The market certainly looks as if it is trying to build some type of base, but if we were to break down below, probably in conjunction with a spike in interest rates, we could see an acceleration of the negativity that we have seen as of late. While we have made a significant bounce over the last 48 hours, it still remains an open question as to whether or not there is going to be any follow-through.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker