Gold Price Forecast – Gold Markets Are Attempting to Recover

Gold Market Technical Analysis

Gold markets have bounced just a bit during the trading session on Thursday as we are most certainly in an oversold condition. At this point, it should also be noted that the trendline from four years ago should continue to cause a bit of noise as well. On the other hand, if we break down below the bottom of the candlestick from the Wednesday session, it is likely that we could go lower. Keep in mind that the US dollar has been working against the value of the gold markets for a while, not to mention the interest rates rising in America.

Ultimately, this is a market that is oversold, so I am waiting to see whether or not the interest rates start to turn around and weigh upon the market again. Ultimately, the $1800 level above should be significant resistance as it was significant support previously. I do believe that the gold markets will continue to struggle as we see so much in the way of noise out there, but the next day or two could be a bit of a relief rally.

From a longer-term standpoint, I like gold, but I think it may have quite a bit of work to do in order to change things, and quite frankly this is a market that you are looking for signs of exhaustion to short unless of course you are looking at a longer-term trend type of “buy-and-hold” type of trade.

Ultimately, after the last couple of candlesticks, it’s obviously a market that has a lot of negativity, and therefore being patient and waiting for the setup is the best thing you can do. If we were to take out the $1800 level to the upside, it would be a Herculean effort and could turn this market around for a bigger move.

Gold Price Predictions Video for 08.07.22

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