Gold Price Forecast – Gold Markets Break Out of the Channel

Gold Price Predictions Video for 16.01.23

Gold Market Technical Analysis

Gold markets have rallied significantly during the trading session on Friday, as we have broken out of the channel that we had been in for so long. This is a sign of momentum picking up, which was a bit of a surprise considering how overdone we had been. At this point, I anticipate that the market will probably go looking to the $1950 level, perhaps even 2000 given enough time. That still means that I’ll be looking for value, meaning pullbacks. We obviously don’t have that, and quite frankly this market has been frustrating because it has not offered a nice entry point in what seems like ages. With that in mind, you will have to be patient unless you are willing to chase the trade.

You certainly can chase the trade, but you need to do so with a relatively reasonable position size. You don’t want to jump “all in” right away, if the market is going to pull back. Momentum eventually will cause that pullback, so keep in mind it is something you need to be very cautious with. That being said, I certainly have no interest in shorting this market, even if we do finally get that pullback.

That will be an extraordinarily dangerous thing to do in this environment, so therefore you will have to be cautious and patient more than anything else. Position sizing will be crucial, but I do think that we will eventually get some type of opportunity to get involved. The negative correlation between the US dollar and gold has broken down so it’s obviously become much more complex of the trade in the last several months.

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