Gold Forecast: Market Gives Back Big Gains

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Gold markets pulled back to the crucial $1920 level on Wednesday, an area that has been important more than once. Forex Gold

With that being said, the buyers will likely return, but there is a little bit of relief in the market as it was suggested that the Ukrainians and the Russians would discuss a cease-fire, which could take the war premium out of gold. The gold markets have had multiple reasons to go higher, so even though tensions in Ukraine may be drifting a bit lower, the reality is that gold still has plenty of room to go to the upside.

If tensions start to pick up again in Ukraine or if the talks produce more bad news, the gold market may be one of the first places that traders go looking towards. Looking at this chart, it is likely that the markets will have a string of support all the way down to at least the $1880 level, which is an area that had previously been resistance. The markets continue to see a lot of volatility, and I think that is going to be the case going forward.

 

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