The Federal Reserve continues to speak of hockey shyness, and this should continue to work against gold. Even if it does not, at the very least you probably need to see a bit of a pullback. Yes, we have had an explosive move to the upside, but momentum can only last for so long. The 50-Dayis near the $1700 level, so that makes as good of a target as any other. Keep in mind that you need to pay attention to the 10-year yield, because the 2-year yield in the United States hasn’t moved.
The $2000 level is of course a large, round, psychologically significant figure, and has people looking for the exits. There will be a lot of profit-taking in that area, and perhaps a lot of people willing to short the market. If we fall below the $1700 level, at that point I would anticipate this market going to test the lows again. However, I think the only thing you can count on is a lot of choppiness right now considering there are so many random things pushing the markets around. Geopolitical factors, inflation, interest rate expectations,speakers, and information links from the ECB earlier in the day all have had an influence on what gold is doing.
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