Gold markets have fallen rather significantly early during the trading session on Friday, but we have turned around to show signs of life again. The $1920 level has been important more than once, and therefore it is not a huge surprise to see the buyers come in and try to pick up the market in this general vicinity. Furthermore, you can see a bit of a hammer from a couple of days ago, so I think it is probably a situation where we are going higher given enough time.
Gold Price Predictions Video 21.03.22
There are a lot of concerns out there around the world, and therefore it is important that you keep that in the back of your head. After all, the gold market is quite often thought of as safety. The more, we have a lot of inflation to worry about, so it is a scenario where you need to see a complete reversal of the world and inflationary pressures to see this market break down. The $1880 level being broken to the downside would be very negative, but right now it does not look like we are trying to do this. However, if we rally at this point, it will probably be a little bit choppier and more casual than it was previously.
When I look at this chart, it is obvious that we had gotten a bit overbought, so this pullback makes quite a bit of sense. We need to have a bit of stable trading in order to allow this market to continue the overall uptrend. Selling at this point is still not an option.
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/gold-markets-bounce-support-level-154444832.html