Gold Price Forecast – Gold Markets Break Through Bottom of Support Range

Gold Price Predictions Video for 16.06.23

Gold Market Technical Analysis

Gold markets fell during the trading session on Thursday, as we broke through the bottom of the overall consolidation area that the market has been in for the last several weeks. This is mainly in reaction to the Federal Reserve jawboning the market after the pause in interest rate hikes. It looks as if the Federal Reserve is likely to continue being ultra-tight with its monetary policy, and as rates rally in the bond market, it makes gold a little less attractive.

However, people are still using gold as well as preservation, so I don’t necessarily think that the market is going to completely collapse. As we drift lower, the market also has to deal with the 61.8% Fibonacci level, and of course the 200-Day EMA which sits right around the same level. All of that should keep the market afloat, at least from a technical analysis standpoint. That being said, if we were to break through all of that, then you have a real shot at the market falling apart. In that scenario, we could see the gold market drop all the way down to the $1800 level, especially if the bond market gets out of control.

On the other hand, if we do recover from here, one would have to think that the 50-Day EMA above could be a significant barrier on the way back out. If we do break that, then the next target of course will be the crucial $2000 level, which is a large, round, psychologically significant figure that a lot of people will be paying close attention to. By doing so, the market would then start to threaten a return to the highs.

When you look at the ultra-long-term chart though, you should keep an eye on the $2100 level. It’s right around there that we have had a “triple top” form, so that’s where we really begin to fight major issues. If we were to break above all of that, then gold becomes a massive “buy-and-hold” market. That being said, I think it would take a major shift in attitude to make that happen. As we are between the 50-Day EMA and the 200-Day EMA indicators, it’s very likely that we will see choppy behavior in this overall range.

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