Gold Price Forecast – Gold Continues to See Choppy Behavior Ahead of FOMC

Gold Price Predictions Video for 01-02-2024

Gold Markets Technical Analysis

Gold continues to be very choppy, but with the FOMC statement coming later in the day on Wednesday, it’s very likely that we will get quite a bit of movement. In this environment, I would anticipate that the market continues to be somewhat confused and choppy, but I don’t necessarily think that we have any major move coming that’s going to break out of this box anytime soon.

Choppiness in the market is indicative of what we are seeing almost everywhere that is not a stock index at the moment, where there’s just nowhere to go. The $2,000 level underneath continues to be a significant support level extending down to the $1980 level, while the $2,075 level above is a significant resistance barrier.

If we can break above there, then it’s likely that we could see more of a buy-and-hold type of scenario. In this market, I do think you buy on the dip, but I’m not looking for big moves, at least not right now. Having said that, if Jerome Powell does shock the market and ends up being reasonably dovish, that could change things, but right now, it’s steadier as she goes.

If we break it down below 1980, that would be very negative, and it probably sends the US dollar quite a bit higher overall. Gold also has the possibility of rallying due to geopolitical concerns, which let’s face it, there are a lot of them out there at the moment. So, I think it also goes beyond the interest rate markets. With that being the case, I like the idea of buying dips in this market but I also would not get huge in any particular position because we have seen a lot of volatility. In general, this is a market that I am bullish on, but I also recognize that we have a lot of work to do in order to pick up the momentum necessary to really see gold soaring. Ultimately, the best thing you can do is find some type of value to get involved in on a pullback.

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