SPDR Gold Trust (GLD)

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Gold Markets Find Buyers on Dips
By: Christopher Lewis | January 17, 2022

• Gold markets initially fell during the trading session on Monday but have found buyers on dips as volume was most certainly thin due to the Martin Luther King Jr. holiday.

Gold markets initially fell during the trading session on Monday but has found enough support underneath the turn things around and show signs of trying to strengthen. That being said, the market is very likely to continue to be choppy, but if we can break above the $1830 level above, this market could take off to the upside. On the other hand, if we break down below the lows of both the Monday candlestick and the Thursday candlestick, that would represent a break of support, perhaps opening up a move down to the $1800 level.

It will be interesting to see what happens, but if the market makes a move, we have a couple of clear potential targets. It is also possible that we simply chop around in the range of the last couple of days, as the market has been so tight. There is a lot of questions out there right now, so this would not be a huge surprise. After all, gold is highly sensitive to interest rates and the US dollar, both of which are all over the place right now. It is worth noting that gold looks like it wants to go higher, but until we clear that resistance above, it is likely that we continue to see a lot of noise.

Ultimately, this is a market that I think will give us a signal in the next couple of days, and it will be relatively simple to follow it. Keep in mind the gold markets do tend to be volatile, so you need to keep your position size rather small until you get a bit of confirmation.

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