Gold Price Forecast – Gold Markets Bounce From 50-Day EMA

Gold Price Predictions Video for 13.12.23

Gold Market Technical Analysis

Gold markets rallied slightly during the trading session on Tuesday, as the 50-Day EMA has come into the picture to offer a bit of support. Ultimately, the $2000 level above is the short-term target. If we can break back above there, it would obviously be a very bullish sign, as the large, round, psychologically significant figure typically will attract attention anyway. If we do break the above there, then I think a lot of money will go flowing into the market to chase the trade.

That being said, with the Federal Reserve meeting on Wednesday, the Swiss National Bank, Bank of England, and the European Central Bank meeting on Thursday, there is a very high likelihood of a lot of volatility in this market, and I think that does come into the picture rather quickly. Ultimately, this is a situation where the market will see a lot of noise, but I do think that we are getting to the point where we might be a little oversold.

You will have to keep an eye on bond yields, especially the US 10 year bond yield, as it has a bit of a negative correlation. The selloff in gold has been rather brutal, so I don’t think it should be a huge surprise to see some type of bounce. However, if we were to break down below the bottom of the candlestick from the Monday session, that would be a very ugly turn of events, possibly opening up a move down to the $1950 level. The $1950 level is also backed out by the 200-Day EMA, so therefore I think it would certainly be on the radars of most traders.

Ultimately, I think that as we head toward the end of the year, there’s probably some position squaring going on as well, and of course there is a bit of fear in the market due to the massive turnaround that we saw last Monday. With that being said, pay attention to the US dollar, interest rates, and of course risk appetite to determine what happens next in the gold market. The next day or 2 could be very noisy, but after that we will more likely than not settle down into a vibe heading into the holidays.

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