Gold Price Forecast – Gold Continues to Look for Answers to Its Basing Pattern

Gold Price Predictions Video for 22.02.23

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Tuesday, as we continue to go back and forth right along the 38.2% Fibonacci level. The 38.2% Fibonacci retracement level has also found itself near the $1850 level, and it looks as if it is doing everything it can to find its footing in this area. We are sitting just below the 50-Day EMA, so there is a little bit of technical resistance in that region, but I don’t believe that we are going to see that be overly aggressive.

The hammer from the trading session on Monday suggests that there are a lot of buyers underneath, so if we were to break down below that candlestick, it could open up a move down to the 200 diving Day EMA. The 200-Day EMA is sitting just above the $1800 level, and it’s also worth noting that we have the 50% Fibonacci level in that same region. The 200-Day EMA will attract a lot of attention as it is a longer-term trend indicator, and a lot of algorithmic systems are built on that indicator. However, if we were to break down below there you then have to worry about a gap on the chart that is near the $1770 level. In other words, there are plenty of places we may see buyers come back into the market.

From a very long-term standpoint, we have essentially touched the top of a large consolidation area, going back several years. If we can break above the most recent high, which is near $1975, and almost certainly opens up the possibility of going to the $2000 level. It obviously would take a lot of work to get there, which starts with breaking above that 50-Day EMA. Above there, the $1900 level has seen a significant amount of selling pressure, so it is most certainly worth paying attention to that area as well.

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