Gold right now is basically in a tug-of-war.
After reaching massive highs earlier this year, the price has pulled back for the last two weeks and is now sitting around $5,016.
The key level everyone is watching is $5,000.
If gold stays above $5,000, the market structure remains strong and buyers will likely push it back toward $5,100.
If gold breaks and holds below $4,985, that psychological floor cracks and the next fast move could be toward $4,840.
Why is gold dropping despite global tension?
• The US dollar is extremely strong, so investors are holding cash instead of gold.
• The Federal Reserve is keeping interest rates high, which makes gold less attractive because it doesn’t generate yield.
• Oil above $100 increases inflation, but it also forces the Fed to keep rates high — creating pressure on gold.
Right now the market is basically waiting for the next catalyst.
The big one is the Fed meeting on March 18.
Until then, expect gold to stay volatile around that $5,000 zone.
Monday’s open will likely tell us which side wins this battle.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.