Keep in mind that gold markets have a lot of different things moving them right now, not the least of which would be geopolitical concerns with regards to the war in Ukraine.
Gold markets moved back and forth on Wednesday to again show the $1920 level as support. It’s a market that’s going awry in general, so I think we’re stuck in the same area that we’ve been in for some time.
It should also be noted that the 50-day EMA sits at the $1910 level and appears to be rising a bit. The $1900 level below is the bottom of the overall range and an area where you would expect to see a lot of buying pressure. As long as we can stay above these two levels, it is likely that we can see a rally in gold. However, there is a lot of resistance above that comes into play and also causes issues, so keep that in mind. Gold has been loud more than once, and it looks like the market is trying to figure out where to go next in terms of a bigger move.
Above it we have significant resistance at the $1950 level and then again at the $1970 level. Both of these areas might be difficult to break above, but if we go above all of that, we are likely to be looking towards the $2,000 level, which is a big, round, and psychologically significant number. That being said, the $2000 level is an area that has been crossed quite quickly in the past, so I think any resistance in this area will more than likely be psychological in type, and not necessarily structural time. In other words, we could cross it off.
Keep in mind that gold markets have a lot of different things moving them right now, not the least of which would be geopolitical concerns with regards to the war in Ukraine. The lack of growth in the world is causing serious concern and some people are choosing to protect their wealth by buying gold. That being said, higher interest rates are limiting the gold market a bit, as it is much cheaper and easier to hold bonds than to pay storage fees when it comes to gold .