Gold Price Forecast – Gold Gets Hammered During the Thursday Session

Gold Price Predictions Video for 22.09.23

Gold Market Technical Analysis

Gold markets have gapped lower to kick off the trading session in the futures market on Thursday to show extreme negativity. That being said, the market continues to see a lot of noise and therefore it’s not a huge surprise to see something like this happen. After all, the Federal Reserve has paused its rate hike cycle, as did the Swiss and the British, both of which were expected to hike rates. At this point, it’s possible that traders are paying more attention to the bond market in the United States, which did see a jump in rates after the Federal Reserve press conference.

Ultimately, gold could be used as a safety asset, but right now it certainly is not being used in that manner. The 200-Day EMA sets closer to the $1925 level, and it does sit above a massive support level in the area of $1900. The $1900 level is a large, round, psychologically significant figure, and an area that has been important more than once. If we were to break down below there, then it’s possible that the market could go much lower.

Alternatively, if we can recapture the 50-Day EMA, it’s possible that we could try to go toward the $1970 level. Clearing that area opens up the possibility of a move to the $2000 level. The $2000 level is a large, round, psychologically significant figure as well, and you would have to think that there is a significant amount of interest being paid to that level. There would also be a lot of options barriers, so somehow that will more likely than not offer a bit of a barrier.

That being said, you are going to have to pay more attention to bond rates than anything else, because as they have spiked over the last 24 hours in the United States, it is beating on the gold market rather roughly. In general, I think you’re going to see a lot of noisy behavior, and therefore I think we’ve got a situation where you have to look at this through the prism of volatility, and keep your position size reasonable and recognize that you are dealing with a dangerous market.

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