Gold has failed yet again, to break out of this sideways range. The Fed Minutes the other day caused the gold rally to quickly reverse at that $1,835 level…again. This morning’s disappointing jobs number doesn’t seem like enough to lift gold prices back above $1,800, so the path of least resistance remains down. Perhaps back towards $1,770 to $1,760. Gold does seem to have based a bottom in that range. Continue to trade the range from the long side is my best advice. I still think that gold is under valued and will eventually move back above $1,900. Ten year note yields have rallied 25 basis points this week. The Fed has indicated that they will hike rates three times this year. Once gold traders get comfortable with the fact that rates must move higher, due to inflationary pressure, then I think gold can finally move higher also.

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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