Gold markets have broken down significantly during the trading session on Monday, continuing to correct from highs that started a few days ago. In general, the market had risen somewhat precipitously and this week we must be very aware that the Federal Reserve is meeting, so it is very likely that it will decisively influence the dynamics of gold. Indeed, if the Federal Reserve continues to be wildly supportive of cutting stimulus, the US dollar stands to gain, and that could be deadly for the yellow metal.
Video gold price predictions 03/15/22
I think it is worth noting that we have broken below Friday’s low and at first glance it looked like a good buying opportunity, but the fact that we have broken through important support may cast some doubt.
We now see the $1950 level as likely to catch the attention of traders and we are confident that $1920 is going to play a prominent role because it has acted as resistance in the past. I personally don’t rule out at all that we go all the way down to that benchmark, but obviously Wednesday’s statement from the Fed will have a lot to do with that.
Regarding Ukraine, it should be noted that gold had risen in price in part due to this factor and it seems that it is now losing strength because traders have some hope that the problems can be resolved. If we take all this into account, the result is that in the short term the increases could receive some downward pressure.
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This article was originally published on FX Empire