Gives Up Early Gains to Print Horrible Candle

This is a bit of a “push-pull” type of market, and I think it should be noted that more choppy volatility should continue to be the case. 

The gold markets rallied significantly on Monday but gave back the gains rather drastically as the interest rates in America shot up straight in the air again. That being said, the market still looks like it is in the midst of a major consolidation area, so I do believe it is only a matter of time before we have to make a bigger decision.

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If we can break above the top of the candlestick for the Monday session, it is very likely that we could go looking to the $2000 level, something that might take a significant amount of time. After all, this is a market that had been overbought, so the fact that we have gone sideways over the last couple of sessions should not be that big of a surprise. Ultimately, this is a market that needs to see the 50-day EMA hold, which is currently down at the $1913 level. That is an area that needs to be defended and it should be. In fact, I think there is a significant amount of support that extends all the way down to the $1800 level, as it is a “zone of support.”

The fact that we continue to go sideways overall just shows that we do not really know what to do with ourselves at the moment, and that should not be a huge surprise based on all of the noise that is going on around the world. After all, there is a war going on at the doorstep of Europe, and of course, there are a lot of concerns when it comes to inflation. Furthermore, a global slowdown is on the horizon, so it all ties together for problems going forward. This is favorable to gold, but it is also favorable to the US dollar. This is a bit of a “push-pull” type of market, and I think it should be noted that more choppy volatility should continue to be the case. Ultimately, I think the market is going to continue to be very difficult, so keep your position size somewhat reasonable, because it is a huge factor in whether or not you are going to survive all of this noise that we currently are going through at the moment.