Gold Price Forecast – Gold Markets Bounced from 200-Day EMA

Gold Price Predictions Video for 07.07.23

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Thursday, as we got ADP numbers that were roughly double what were expected. Because of this, the natural reaction was that interest rates were to spike, and therefore traders started to buy the US dollar, putting downward pressure on gold as a result. With the Non-Farm Payroll numbers coming out on Friday, this will put a spotlight on the US dollar obviously, and that obviously could have a major influence on what happens next in the gold market.

From a technical analysis standpoint, it’s probably worth noting that the market has bounced from the 200-Day EMA, and the 61.8% Fibonacci level. Because of this, the market is more likely than not going to continue to be noisy, but it certainly looks as if we are trying to find its footing and go higher. The 200-Day EMA a course is an indicator that a lot of people pay close attention to, but if we can continue to see buyers, the $1950 level will be targeted, and then eventually overcome. In that environment, I think we probably go looking toward the $2000 level.

Pay close attention to the US dollar, but perhaps more importantly, pay close attention to interest rates in America. If they start to climb in the bond market, that obviously puts downward pressure on gold as being able to sit on bonds and earn over a 5% return is very attractive to most traders. That being said, the market is likely to continue to see a lot of noisy behavior, as the jobs number will obviously take center stage for the next 24 hours. We are currently trading between the 50-Day EMA and the 200-Day EMA indicators, and that typically means you’re going to see a certain amount of choppy and sideways behavior. Nonetheless, as long as at 200-Day EMA indicator holds as support, gold still has a lifeline to go higher. If we break down below there, then we could see the market go racing toward the $1800 level on some type of stronger selloff as the market has been struggling over the last couple of month.

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