Gold Price Forecast – Gold Markets Continue to Hover

Gold Price Predictions Video for 01.11.23

Gold Market Technical Analysis

Gold markets have done very little during the early hours on Tuesday, as we continue to test the $2000 level for potential support. All things being equal, the market looks as if it needs to sort out its next move, and perhaps digest the massive move higher. We are certainly in an extreme part of the previous consolidation, so a pullback could make a certain amount of sense. This is not to say that I think that the gold market is suddenly going to start selling off drastically, but a little bit of profit-taking probably makes sense at this point in time.

You can even make an argument that we are in the midst of forming a rising wedge, which is also a bearish signal, opening up a move down to a loss of about $50 from current pricing. While that may seem somewhat significant, when you look at it through the prism of the previous trend, it would be a typical pullback. On the other hand, we could break above the recent highs, which opens up the possibility of a move to the $2050 level, possibly even $2100.

Unfortunately, gold is moving on the latest headlines more than anything else, and that of course is something that you cannot predict. The most obvious headlines would be the war between Israel and Hamas, which of course continues to have traders worried about an expanding war in the region. On the other hand, if there is more of a political settlement in the end, that could send gold crashing, at least for the short term. Keep in mind that interest rates in the United States continue to work against the value of gold, so at that point in time it’s likely the traders will focus more on the bond market than anything else.

Regardless, gold does look bullish at the moment, and I don’t think that we necessarily see the trend change without quite a few things happening. Because of this, I tend to look at short-term pullbacks as buying opportunities, such as the aforementioned rising wedge breaking down. I don’t have any interest in shorting gold, but I certainly don’t feel the need to jump in and chase the trade at the moment.

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