Yahoo Finance Gold Markets Continue to Give Back Gains
Gold markets have initially tried to rally during the trading session on Friday, but it looks like the panic from the Ukraine invasion has been overdone, and it is interesting to see that we have in fact had a complete reversal, as it looks like the Ukraine war is not going to spread out. Now that the market has had the opportunity to overreact, we have also seen a lot of people “left holding the bag.” Unfortunately, most of those people are probably retail traders.
Gold Price Predictions Video 28.02.22
The $1880 level underneath should be supportive, but I think we could even break down below there a bit. I would be very interested in a pullback towards the 50 day EMA, because the 50 day EMA does of course attract a lot of attention in general. All things been equal, this is a market that I think will eventually be bought, because there are plenty of inflationary concerns out there causing gold to go higher over the longer term and of course concerns about currency depreciation. With that being the case, it does make a certain amount of sense that gold will continue to get a bit of a bid.
Another argument for gold is that there is so much uncertainty in the world, and the situation in Ukraine could get out of hand. The gold markets are often a function of a lack of growth as well, so there are a lot of things working for the metal. That being said, in the short term we could very well break down a bit to offer a little bit more in the way of value.
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This article was originally posted on FX Empire
