Gold Price Forecast – Gold Markets Continue to Grind Away

Gold Price Predictions Video for 06.10.23

Gold Market Technical Analysis

Gold markets initially tried to rally during the trading session on Thursday, as we continue to see the markets question whether or not are going to see the Federal Reserve loosen monetary policy, or they are going to be very tight for a long time. Ultimately, the market is oversold so I would not be surprised to see some type of bounce, but this will come down to what’s going on in the short end of the yield curve, so the bond markets will continue to attract a lot of attention. If we break down from here, and I do think that it’s very possible, we will almost certainly target the $1800 level. However, we have “fallen out of bed” so hard that one thinks eventually we should bounce.

A rally from here will face several hurdles, but for me, the “ceiling in the market” is at the $1900 level. If we were to break above there, it would obviously be a major victory for the bullish gold bugs, and could change a lot. That being said, it seems very unlikely, and the US dollar is also like a wrecking ball for gold, so you need to keep that in the back of your mind as well.

If gold were to break below the $1800 level, it would be an extraordinarily negative sign, and would more likely than not send gold plunging. While I don’t necessarily think that will be easy in the short term, you need to keep in mind that Friday is the jobs number in the United States, and that could have a major influence on what goes on in the bond markets.

In other words, it very well could be a catalyst for interest rates to continue interfering with gold and any attempt at a rally. Between now and the Non-Farm Payroll numbers, I would anticipate that the markets consolidate more than anything else, as we try to sort out this mess. With that being said, I think you need to be very cautious if you are involved, and quite frankly I don’t think it’s a bad idea to stay out until after we see what the Friday action tells us.

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