Gold Price Forecast – Gold Markets Continue to Pull Back

Gold Price Predictions Video for 22.03.23

Gold Market Technical Analysis

Gold markets have fallen a bit during the trading session on Tuesday, as we have pulled back from the psychologically important $2000 level. This is an area that I think a lot of people will be paying close attention to, but with the FOMC meeting on Wednesday, it makes perfect sense that the gold market may slow down.

Furthermore, you have to keep in mind that the gold market had been overdone, so even if it is in a bullish trend, the reality is that you will have to pull back occasionally to attract more traders. At the end of the day, even though we have formed a red candlestick, the reality is that a lot of people were out there looking to get involved in gold, so if it becomes cheaper, it makes sense that a lot of “FOMO trading” could enter the fray.

I do believe at this point in time that the $2000 level will continue to be very psychologically important, as it has been structurally important as well. If we can break above the top of the shooting star from the Monday session, then it’s likely that we could go much higher. That probably kicks off the next major bullish run for gold, which of course will be heavily dependent on what the Federal Reserve does at its meeting.

If Jerome Powell suddenly sounds dovish, that would send gold skyrocketing at this point. After all, it would bring down the value of the US dollar, and therefore it would take more than is US dollars to buy an ounce of gold. On the other hand, if he sounds extraordinarily hawkish, then it could put a bit of a noose around the neck of gold, lease for the short term. Do not get me wrong, gold and the US dollar can rise at the same time, and in fact did spend the better part of a decade doing that during the 1980s. However, that’s more or less a safety trade than anything else, so a lot of this will come down to whether or not traders have the psychology to start buying gold going forward. Looking at the charts, it looks like they do, and therefore pullbacks should be looked at for signs of support.

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