Gold Price Forecast – Gold Markets Pulled Back Slightly Heading Toward Holiday

Gold Price Predictions Video for 07.04.23

Gold Market Technical Analysis

Gold markets pulled back just a bit during the trading session on Thursday, as we may have gotten a little overextended. That being said, the market has to worry about Good Friday, and therefore it’s likely that we will see a lack of volume and conviction. Alternatively, the market will continue to be very noisy, but I think a little bit of a pullback makes sense, as the market has gotten far too ahead of itself. The fact that nobody will be trading on Friday and will have to worry about the Non-Farm Payroll numbers suggests that we are going to perhaps see a lot of danger.

Nonetheless, even if the market does continue to be very bullish, the reality is that we have gotten here too quickly, and therefore we probably need to work on some of the froth. A little bit of a pullback could offer value, especially if we drop down towards the $2000 level, which is an area that is a large, round, psychologically significant figure. The area previously had been important, and of course there is a lot of headlines to be had, and therefore a lot of people will be paying close attention to it.

On the other hand, if the market does break above the $2050 level, then it’s likely that we go to the $2100 level. If we break above there, then it goes into a longer term “buy-and-hold” type of situation. That being said, there’s no way that I’m willing to sell gold at this point, because it has been such a winner. Pulling back offers “cheap gold”, and that’s exactly what most traders out there will be looking for. Keep in mind that this market has been getting a boost to the idea of wealth preservation, due to the fact that the market has been so difficult to deal with in so many different assets.

As traders worry about losing wealth, gold provides a safe haven asset and that’s the exact trade that we have seen for so long. Furthermore, some traders are starting to buy gold due to the fact that they believe the Federal Reserve is going to have to go back into quantitative easing. Either way, gold is extraordinarily bullish and should be thought of as offering value every time it dips.

For a look at all of today’s economic events, check out our economic calendar.