Gold Price Forecast – Gold Markets Await FOMC

Gold Price Predictions Video for 15.12.22

Gold Market Technical Analysis

Gold markets have been rather quiet during the trading session on Wednesday as we await the FOMC meeting announcement, which of course will have a major influence on markets. While most traders are expecting a 50 basis point rate hike, the reality is that most people will be paying attention to the statement, not much more than that. Traders are out there hoping that the Federal Reserve will come and bail them out, which is the same game we have been playing forever.

On the other side of that, if interest rates do in fact start to drop, that will greatly influence the ability of gold to rally. On the chance that the market actually listens to Powell and believes any type of hawkish rhetoric that he has, then gold will get crushed. I don’t necessarily expect that to happen, but a little bit of a pullback probably wouldn’t be the worst of things as we have seen so much in the way of an overextension as of late. You can also make an argument for a little bit of a rising wedge, but I’m not overly sold on that proposition as of yet.

In general, I think this is a market that will continue to be very noisy, but I do believe that it remains positive over the longer term. Buying on the dip could make for a nice trade, and I think that there’s a bit of a dynamic floor down at the 200-Day EMA if we were to reach that level. I don’t expect that, but it is something that very well could come into play. I suspect that gold is going to have a nice run due to inflation and recession.

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