Gold Price Forecast – Gold Markets Continue to Hover Just Below Major Resistance

Gold Price Predictions Video for 31.10.23

Gold Market Technical Analysis

Gold has done very little during the session on Friday, as we continue to hang around the $2000 level. The $2000 level course is a large, round, psychologically significant figure, and therefore it does make a certain amount of sense that the market is just hanging around in this area. Furthermore, the market had shot straight up in the air, and therefore we need to work off some of the excess froth at this point. Because of this, I think we continue to see a lot of choppy behavior in this area, as we could drop $20 and still be within the recent consolidation range.

On the upside, if we can break above the $2000 level on a daily close, it’s likely that we could run toward the $2050 level. The $2050 level has been important in the previous couple of swings higher, and therefore I think it offers a major resistant barrier as well. All things being considered at this point, the market is likely to continue to see a lot of negative correlation to interest rates, especially in the United States on the 10-year note. Furthermore, the US dollar can have a negative correlation, so pay attention to that as well.

When you look at this chart, you can see just where we are, so it does make quite a bit of sense that we have to figure out whether or not we can continue to go higher, or if we break down. It’s worth noting that silver looks very soft, so it could pull down gold with it. Because of this, we need to keep an eye on the candlestick from Tuesday, because if we break down below that hammer, it could open up quite a significant amount of downward pressure.

Keep your position size reasonable, because the volatility is probably going to get worse, not better, and therefore you need to be able to withstand the massive swings this market could have within a very tight range. Keep in mind that geopolitical issues continue to be a major driver of volatility as well, which of course is completely unpredictable.

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