Gold markets have gone back and forth during the trading session on Wednesday, as we have recently seen interest rates in the United States spike, causing havoc in the precious metals complex. After all, the idea of clipping coupons in a higher interest rate environment is much more palatable than paying for storage when it comes to gold. Nonetheless, we have seen a monster day during the Tuesday session, so now the question is whether or not we can see some type of follow-through?
Gold Price Predictions Video 11.03.21
At this point in time, the market breaking above the top of the range for the trading session on Wednesday does open up the possibility of a move towards the $1750 level, which is a major barrier. Breaking above there then could see gold taking off. Having said that, it is going to take a significant amount of momentum to make that happen so keep that in the back of your mind.
On the other hand, if we were to break down below the bottom of the lows from the Tuesday and Wednesday candlesticks, that would open up a “trapdoor effect”, perhaps sending gold down to the $1550 level over the longer term. The market certainly looks as if it is trying to build some type of base, but if we were to break down below, probably in conjunction with a spike in interest rates, we could see an acceleration of the negativity that we have seen as of late. While we have made a significant bounce over the last 48 hours, it still remains an open question as to whether or not there is going to be any follow-through.
For a look at all of today’s economic events, check out our economic calendar.