Gold Price Forecast – Gold Markets Continue to Grind in Consolidation

Gold Price Predictions Video for 08.12.23

Gold Market Technical Analysis

Gold markets initially tried to rally during the session on Thursday, as we continue to try to sort out where we are going next. The recent volatility has made the gold market very difficult to deal with, therefore it’s not a huge surprise to see us try to work off some of the fear. The week started out with a huge bang, only to turn around and fall apart. However, it now appears that we are trying to form some type of consolidation range between the $2000 level underneath, and then above at the $2050 level above.

Looking at this chart, it’s obvious that the $2000 level will be an area that people pay close attention to, because not only has it previously been resistance, but now it’s acting as support. It’s also a large, round, psychologically significant figure, and an area where I imagine that there are a lot of options barriers to be found. In general, I think this is a situation where you have to be very cautious, but I still like the idea of buying gold, not selling it.

We look at gold, it can serve as safety, but it also can serve as a way to fight falling interest rates. In general, I think this is a situation where you will continue to see a lot of noisy behavior, and the fact that Friday has the Non-Farm Payroll announcement coming out, and that of course will move interest rates quite drastically in the United States, which will have its knock on effect here in the gold market. Beyond that though, we also have a lot of geopolitical concerns out there that could drive gold higher, so keep an eye on all of that. Either way, I don’t have any interest in shorting gold anytime soon, but if we were to break down below the $2000 level and the 50-Day EMA, then I would have to reevaluate things, but right now it doesn’t look like we have the momentum to do so. In general, if we break above the $2050 level again, I think we continue to climb much higher.

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