Gold Price Forecast – Gold Markets Run Into 50 Day EMA

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Monday as we have tested the 50 Day EMA again. By doing so, the market looks as if it is ready for a little bit of a pullback, as we are probably overbought. In this scenario, I would anticipate that markets will continue to be very noisy, so pay close attention to how we close the day. The $1800 level above is also a rather important resistant barrier, so if we were to pull back from here, it would not be much of a surprise.

Underneath, I would anticipate that the $1750 level should offer a significant amount of support due to “market memory.” With that being the case, if we were to pull back there and bounce, that would be a bullish sign that perhaps the structure of the market is changing. It’s worth paying close attention to the interest rates in America which continue to drop. At this point, that suggests that we may see a complete shift in behavior, which is interesting considering that it happened at roughly the bottom of the overall longer-term trend, near $1680.

Markets will continue to be jittery and noisy, as we are heading into a recession, but the market is already trying to price in the idea of the Federal Reserve and other central banks around the world easing monetary policy. If they are in fact doing that, then it’s very likely that we would see gold benefit as a result. That does not mean that it’s going to be easy, so therefore you need to be very cautious with your position sizing, as this market can get quite volatile.

Gold Price Predictions Video for 02.08.22

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