Gold markets have gone back and forth during the trading session on Thursday as we continue to consolidate above the recent break-out point. The $1920 level continues to offer a bit of support, as it had previously been very resistant. Ultimately, I think this is a market that will continue to see choppy and difficult behavior, but overall, I have no interest whatsoever in shorting gold. Quite frankly, the markets are very strong as we have multiple reasons to think that gold will continue to appreciate.
Gold Price Predictions Video 04.03.22
The inflationary concerns work in gold’s favor. There are a lot of concerns when it comes to geopolitical issues as well. Beyond that, there is also a lot of chatter about “stagflation.” This is when inflation and a lack of growth happen at the same time, so it makes for an almost impossible environment for economic strength. That being said, the market is likely to continue to find buyers on dips simply due to the fact that the momentum is moving higher right along with the fear.
Underneath, the $1880 level is going to be what I consider the “floor the market”, and therefore it is probably a very negative sign if we turn around a breakthrough at that level. If we do, then we will probably see a complete collapse of the bullish pressure, although this is not something that I am expecting to see anytime soon. Ultimately, I do think that gold goes looking towards the $2000 level, but the occasional pullback will be needed in order to build up the momentum to make that type of massive move.
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