Gold markets have gone back and forth during the course of the trading session on Monday, as we continue to watch for news out of the Ukraine/Russia tensions, which has had money flying into gold. That being said, gold has been going higher to begin with, so this simply accelerates what has already been going on. With this, the market is likely to continue to see a lot of back and forth, so you certainly need to be cautious with your position size. That being said, if we can break above the $1920 level, we will then have chewed through all of the supply and could go looking towards the $2000 level above.
Gold Price Predictions Video 22.02.22
On the other hand, if we were to turn around a break down below the $1880 level, that could send the gold market to lower levels, reaching towards the $1860 level underneath, and with that being said it is likely that we continue to see buyers in that general vicinity unless of course the outlook for inflation and war suddenly changes.
That does not look likely to happen anytime soon, so therefore it is very important to think about the idea of any dip in gold as being a potential buying opportunity. Furthermore, the markets are likely to see quite a bit of money flowing into it as it has gone a bit parabolic, so a pullback would probably be welcomed, even by the most diehard bulls. I have not any interest in shorting this market anytime soon, as there is a significant amount of demand out there and even though there is also US dollar demand, the reality is it is all a flight to safety.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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