Gold Price Forecast – Gold Markets Continue to Grind Lower

Gold Market Technical Analysis

Gold markets have fallen again during the trading session on Monday, as it looks like we are going to continue to reach towards the lows that were made recently near the $1620 region. If we were to break down through that level, then the $1600 level will be targeted, followed by the psychologically important $1500 level.

Interest rates and the United States dollar both are working against the value of gold, and of course we have the Federal Reserve meeting and announcement on Wednesday that will be front and center when it comes to what people do with interest rates, the US dollar, and then by extension gold markets.

With that being said, I think a lot of people had hoped against any form of reason whatsoever that the Federal Reserve was going to start softening its stance monetarily speaking. This is because the Bank of Canada raised interest rates less than expected, after the Reserve Bank of Australia did the same thing. However, the ECB raised by 75 basis points since then, as anticipated.

Jerome Powell is not going to do what Canada or Australia once, because the Federal Reserve still has to worry about the massive amount of inflation that’s found in the United States, which does not seem to be getting any better. It’s going to take some time to get that under control, so I think the Federal Reserve remains high for the foreseeable future.

Ultimately, we are in a downtrend, that’s probably what you need to pay the most attention to. I do believe that the $1680 level will continue to offer resistance, and of course the 50-Day EMA rushing into the same area tells me that it could be significant resistance going forward as well.

Gold Price Predictions Video for 01.11.22

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