Gold Price Forecast – Gold Continues to Press Higher

Gold Price Predictions Video for 07.03.23

Gold Market Technical Analysis

The gold market experienced a significant rally at the start of Monday’s trading session, but then pulled back to test the 50-Day EMA. However, despite this short-term fluctuation, it is important to recognize that the gold market will continue to be highly volatile and subject to the influence of the US dollar and the central bank in the United States.

While the market is currently showing signs of upward momentum, there are several major areas of concern that could pose significant obstacles. The first is the $1900 level, which has previously demonstrated strong selling pressure and remains a significant barrier. Even if this level is breached, there are negative candlesticks sitting just above it that could cause further issues.

It is also important to consider broader market trends, such as the current volatility in the bond market, which is affecting gold and other markets as well. If gold were to break through the $1800 level, it would represent a significant breach of key support levels and could lead to a significant sell-off.

Given the current instability of the gold market, it is essential to exercise caution in position sizing. However, for those who have already taken a position based on the bounce from the 200-Day EMA, it may be appropriate to consider adding to that position. That being said, I would be cautious about becoming overly aggressive in any particular direction at this point, as the market will almost certainly cause quite a bit of aggravation for traders who are overly exposed. Because of this, caution will continue to be the better part of valor when it comes to trading gold in this environment.

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