Gold Forecast Gold Markets Find Buyers On Every Dip

　　Gold markets have fallen initially during the course of the trading session on Wednesday to show signs of weakness, but every time we reached towards the $1890 level, we have seen buyers jump back in and pick this market up for the last three days in a row. That of course was no different on Wednesday, as it looks like we continue to test the $1900 level in general. That being said, we are essentially in the middle of the overall consolidation area.

　　When you look at the chart, you can see that the $1920 level is a significant barrier in the futures market, so if we were to break above there then I think the market probably takes off and starts reaching towards the $2000 level over the longer term. Because of this, I think it would probably need some type of boost to go higher, lease in the short term. Russia invading Ukraine would certainly be that catalyst, as gold would probably spike quite drastically at that point. That being said, it is probably only a matter of time before buyers would come in on any dip, but we could get a little bit of a selloff due to any Russian de-escalation of tensions. However, that should only end up being a buying opportunity.

　　At this point, the $1880 level underneath should be support, as it was significant resistance previously. However, if we were to break down below there then I will simply wait for some type of support that I can get involved in. After all, the market has been bullish for inflationary reasons much longer than the problems in the Ukraine have been going on, so I think that will not change the overall trend, and I look at any type of massive selloff as a nice buying opportunity unless of course the Federal Reserve steps to the side and suddenly suggests that it is not going to tighten monetary policy. That being said, it will be interesting to see how this plays out due to the fact that we have seen so much in the way of volatility. The market has recently formed a couple of hammers, so if we can break out above that resistance area, then I will be aggressively long of this market at that point.