Yahoo Finance Gold Markets Give Up Early Gains
Gold markets have initially tried to rally during the course of the trading session on Monday but continues to see the $1850 region as major resistance. Because of this, the market is likely to continue seeing a lot of choppy behavior, and of course it does make a certain amount of sense that we would be see the gold markets get sold off as the US dollar strengthen. Whether or not we break down from here is a completely different question though, because there is a certain amount of safety when it comes to gold, at least in theory.
Gold Price Predictions Video 25.01.22
If we do break down below the $1830 level, I think at that point in time we will reenter the consolidation area that we had been in. This will be very reminiscent of both the EUR/USD and the GBP/USD currency pairs, as they had “false breakout” and gold would simply be following right along. This would be all about the US dollar, which makes a certain amount of sense as the greenback is considered to be a safety currency. With that in mind, it weighs upon gold, right along with other commodities, but if there is some type of major fear factor, sometimes gold could give you a little bit of help.
Keep in mind that the US dollar is king and makes everything else move according to what is going on with it. Furthermore, the market should continue to see a lot of volatility so at the very least you need to keep that in mind. Nonetheless, this is a market that will continue to be very noisy and at least at this point in time, is still in a slight uptrend.
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This article was originally posted on FX Empire
