Since the Fed announcement on Wednesday, the gold market has added $62.00 of premium. A close today above $1,800 would confirm a short-term bottom and reversal. The next big test for this rally will be in the range of $1.832 to $1,835. I have said before that this next rally would likely have an easier time moving back towards the November swing high of $1,882. But let’s not get too far ahead of ourselves just yet. I like gold and do expect that there will eventually be a challenge of the $2,000 level, however, I’m reluctant to get too excited about gold doing what it should have been doing all along. We have been faked out and disappointed too many times already. Considering all the cash, the money printing stimulus and emergency type measures taken by the government, gold should be much higher. That’s just my opinion! Gold will attract more buying as the trend up becomes more pronounced. When it comes to gold, the higher it goes, the more people want it.

Gold Feb ’22 Daily Chart
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Frank J. Cholly

Senior Market Strategist

Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.

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