Gold Markets Recover After Initial Plunge

Gold markets have been a bit noisy during the trading session on Friday, but at the end of the day it suggests that we are simply going back and forth. With this being the case, I think you need to be cautious about your position size and recognize that volatility begets volatility. However, if we do break above the highs of the trading session on Thursday, that could open up the possibility of a move towards the $1850 level. Quite frankly, the gold market is doing everything it can to try to rally and go higher, perhaps kicking off a longer-term “buy-and-hold” type of situation. That being said, it is very unlikely that it is going to be easy.

Gold Price Predictions Video 14.02.22

To the downside, if we were to break down below the lows of the last couple of days, then the market could go looking towards the $1813 level where the 50 day EMA is. All things been equal, this is a market that looks as if it is trying to pick up its momentum, and when you look at the longer-term chart you can even make an argument for a bit of a “rounded bottom” on the weekly chart. Either way, I think that the market will continue to see a lot of noisy behavior, and of course will move in reaction to the US dollar and interest rates in America.

All things been equal, I think this remains more or less a “buy on the dips” type of situation as inflation is ready to take off but you have to be cautious with goal because it is so volatile most of the time.

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