Gold Price Forecast – Gold Markets Breakthrough Resistance as Rates Fall

Gold Price Predictions Video for 14.03.23

Gold Market Technical Analysis

Gold markets have gapped higher to kick off the trading session on Monday, and then smashed through the crucial $1900 level. This is based upon the idea that the Federal Reserve may change its monetary policy now that regulators are stepping in to save Silicon Valley Bank. This of course is ludicrous, and therefore it could be a bit of a bull trap, as the Federal Reserve will almost certainly come into the picture and reiterate its need for tighter monetary policy. Inflation is going nowhere, and that of course is a bit of an issue.

That being said, we did form a double bottom at the 200-Day EMA, so this move does make a certain amount of sense, but I think it’s a bit overdone in the short term. A pullback would make a certain amount of sense, but we will have to wait and see what happens next. Ultimately, this is a situation that will continue to be very noisy, and we are starting to head into an area that saw a ton of selling previously as you can see by 2 massive red candlesticks in February from the highs.

I believe that gold will more likely than not settle down a bit, and it could send this market back down to the 50-Day EMA. I would need to see some type of exhaustion candlesticks to get involved to the downside, or a complete turnaround in the interest rate markets, something that I do think probably happens given enough time. That will have the knock on effect of increasing the value of the US dollar, and therefore could open up a move lower for gold.

Expect a lot of volatility, but after this massive move higher over the last couple of candlesticks, at the very least we need to settle down. I would not chase gold all the way up here, even if you knew that it was going to hit the highs. There will be pullbacks, and we will have to monitor how that plays out over the next several sessions, to give us a bit of a “heads up” as to where we are getting ready to go next.

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