Gold markets have taken off to the upside in order to show signs of strength yet again during the day on Monday. As long as there is a lot of risk aversion out there, it does make a certain amount of sense that gold could pick up a bit of momentum. That being said, we are getting close to the top of the overall range, so I certainly think there is the possibility of profit-taking in this general vicinity, so I would look for some type of value if you get the opportunity.
Gold Price Predictions Video 15.02.22
However, if we clear the $1880 level, one would have to think that we are ready to go looking towards $1900 level. Gold certainly looks as if it is trying to break out, and we have made a significant attempt still far. However, I would also point out that volume is not as strong as I would like to see. The volatility of course is something that is going to be worth paying attention to, so all things being equal I think we need to be cautious with our trading position.
The US dollar course is something that you need to pay close attention to, because it can work against the value of the gold market at times. Furthermore, you need to pay close attention to the interest rate in the United States, because that will obviously have a major influence on what happens with the gold market. If they continue to spike, that could be negative for this market.
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This article was originally posted on FX Empire
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