Gold Markets Getting Stretched
Gold markets have rallied during the trading session on Wednesday to reach above the $1830 level. That being said, we have also filled a gap which of course is something that you look for futures markets do. There should be a significant amount of resistance in this general vicinity, but we will have to wait and see how this plays out. If we can break above that gap, that would be very bullish and could send the market looking towards the $1880 level. That being said, it takes a lot of effort to make that happen.
Gold Price Predictions Video 10.02.22
The Thursday session features the CPI announcement coming out the United States, which will have a major influence on where inflationary expectations come into place, as the US dollar will either spike higher or lower based upon what people think the Federal Reserve is going to do. Ultimately, one thing I think is that you can count on a lot of volatility during the trading session on Thursday, and perhaps a little bit more clarity. If we drop back down below the $1820 level, then we may go lower, perhaps reaching towards the bottom of the recent consolidation near the $1780 level or so.
Keep your position size relatively small, as the volatility is going to be brutal. That being said, I think the market is going to be difficult, but we are definitely getting closer to the top of the overall range than the bottom, so CPI could be a game changer, or it may simply keep this market in the same trading range that we have been in for quite some time.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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