Gold Price Forecast – Gold Markets Bounce After BOJ Intervention

Gold Market Technical Analysis

Gold markets initially fell during the trading session on Friday, but then turned around to show signs of life. At this point, it’s a simple reaction to the US dollar falling in value, but this is more likely than not going to be extraordinarily short-lived. In fact, I will be paying close attention to the $1680 level, which was previously important as support. We also have the 50-Day EMA hanging about the $1700 level, so I think that there are plenty of things above that could come into the picture to cause headaches for the bullish traders out there.

As long as the Federal Reserve continues its extraordinarily tight monetary policy, I just don’t see how you can take a gold rally seriously. This is not to say that we cannot rally for a few days, but at the first signs of exhaustion and by extension, US dollar strength, I will not hesitate to short gold. If we break down below the last 2 lows that I have marked on the chart, then I think the floodgates open and gold drops down to the $1600 level, possibly even down to the $1500 level.

Central banks around the world continue to tight monetary policy, but none of which are tightening the way the Federal Reserve is, so with that being the case it’s difficult to imagine that the US dollar won’t cause problems for gold given enough time. In fact, it’s really difficult to imagine a situation where the trend changes easily. I think this bounce will end up being a nice selling opportunity for those who are patient enough to wait for signs of weakening.

Gold Price Predictions Video for 24.10.22

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