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Gold Markets Attempt to Break Out for the Week

By:
Christopher Lewis
Published: Jan 21, 2022, 17:01 UTC

Gold markets have had a good week, but you can see that we have given back some of the breakout gains, and it will be interesting to see if we can continue the momentum.

Gold Markets Attempt to Break Out for the Week

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Gold markets have struggled a bit during the week to hang on to what would be outsized gains. This is a market that broke out of a month-long consolidation area, only to give back everything outside of it. Because of this, I am a little bit cautious at this point, but if we were to break above the top of the candlestick for the week then I believe that this market could go looking towards $1870 level. That is a small gain for the weekly chart, but it does open up the possibility of trying to take out the $1900 level after that.

Gold Price Predictions Video 24.01.22

It is worth noting that underneath we have a significant amount of support near the $1800 level from a psychologically important standpoint, but we also have support underneath there at the $1775 region. As long as we can stay above all that, we still have a shot at trying to make some gains. If we give those up, then it could get ugly rather quickly. Ultimately, I think this is a market that needs to make up its mind, and that could be done externally at this point, especially due to the massive amount of fear and potential US dollar buying there is.

I think gold also is getting a bit of a boost from the inflation argument, but there is a certain camp of trader out there now who believes that inflation may have peaked, and if that actually is true, goals going to be in trouble yet again. I think we have a rough couple of weeks ahead of us, and we certainly are going to have to pay close attention to the next several days to get a feel for where we could go. Remember, we need momentum on the short-term charts to make the longer-term charts move.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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