Gold Markets Continue to Slide

Gold markets have broken down significantly during the course of the trading session on Monday, to continue the major pullback we have seen from the highs. The market has gotten a bit ahead of itself, and now that we have the Federal Reserve meeting this week, it is very likely that there will be a major influence from that statement in this market. After all, if the Federal Reserve continues to be extraordinarily hawkish, that could strengthen the US dollar, thereby putting a little bit of an anchor around the neck of the gold market.

Gold Price Predictions Video 15.03.22

It is worth noting that we have broken through the bottom of the hammer on Friday, which initially look like a nice buying opportunity. The fact that we broke down through that candlestick shows that we have chopped through the support that was showing itself, and therefore a lot of people will be looking to bail out on this position.

The $1950 level could be an area of interest, and most certainly the $1920 level will be as it was in previous resistance. It is very possible that we are dropping all the way down there in order to find buyers, but of course, the statement on Wednesday could have a lot to do with what happens next, and this could just be continued profit-taking after a massive move. It is also worth noting that there was a little bit of a “war premium” built into this trade, which seems to be fading a bit as traders are hoping for optimistic outcomes from Ukraine. At this point, it is likely that we will continue to see downward pressure on short-term rallies.

For a look at all of today’s economic events, check out our economic calendar.