Gold markets went back and forth on Wednesday to show the $1920 level as support yet again. This is a market that has been going sideways in general, and therefore I think we are stuck in the same area that we have been in for some time.
It is also worth noting that the 50-day EMA is sitting at the $1910 level and seems to be rising a bit. The $1900 level underneath 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 both of those levels, then it is likely that we could see a gold rally. However, there is a lot of resistance above that comes into the picture and causes problems as well, so please keep that in mind. Gold has been noisy more than once, and it looks as if the market is trying to figure out where to go next as far as a bigger move is concerned.
Above, we have significant resistance at the $1950 level, and then again at the $1970 level. Both of those areas could be difficult to get above, but if we do break above all of that, then it is likely that we go looking to the $2000 level, which is a large, round, psychologically significant figure. That being said, the $2000 level is an area that has been blown through rather quickly in the past, so I think that any resistance in that area more than likely will be of the psychological type, and not necessarily of the structural time. In other words, we could slice through it again.
Keep in mind that the gold markets have a lot of different things moving them around at the moment, not the least of which would be the geopolitical concerns when it comes to the war in Ukraine. There is a serious concern when it comes to the lack of growth around the world, and some people are choosing to protect their wealth by purchasing gold. That being said, the higher interest rates do keep a little bit of a lid on the gold market, as it is much cheaper and easier to own bonds than it is to pay the storage fee when it comes to gold.
