Gold Price Forecast – Gold Markets Continue to Show Hesitation

Gold Market Technical Analysis

Gold markets have fallen a bit during the trading session on Friday as we head into the weekend on the back foot. The $1750 level looks as if it is offering support, so if we were to break down below that level, we could see a bigger move to the downside. In that scenario, we could see gold drop down to the 50-Day EMA which is sitting just above the $1700 level. That obviously is a rather big move and could send shockwaves through the markets. That being said, you can also make an argument for the “W pattern” that ends at the $1750 level, so therefore we are sitting right at potential support as it was resistance previously.

The market more likely than not will continue to be noisy, as the gold market is directly influenced by the US dollar, and of course interest rates in America. Currently, it’s likely that we continue to see volatility as so many people are all over the place when it comes to what the Federal Reserve will do next. If they do continue to tighten monetary policy, that could cause a little bit of a drag on gold. On the other hand, if we were to break above the $1800 level, then it’s possible that we could go much higher, eventually reaching toward the $2000 level.

Central banks around the world continue to threaten tightening, but as soon as we have a situation where they start loosening again, gold is going to be one of the best investments out there considering its historical negative correlation. Nonetheless, I think this is a situation where you need to be cautious with your position size.

Gold Price Predictions Video for 21.11.22

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