Gold Price Forecast – Gold Markets Continue to Trade in a Triangle

Gold Price Predictions Video for 03.05.23

Gold Market Technical Analysis

Gold markets have rallied slightly during the trading session on Tuesday, as we continue to see a lot of noisy behavior. Ultimately, there are a lot of things going on this week that will have a major influence on the gold market, especially with the Federal Reserve meeting on Wednesday. The Federal Reserve will have a certain amount of influence on the gold market as traders will be paying attention to not only the interest rate hike, but also the statement that follows. Furthermore, there’s a press conference that could throw a lot of volatility into this market.

Having said that, we also have Thursday that features the European Central Bank meeting, which also has an interest rate decision and statement that will throw the markets around. After that, we have the Non Farm Payroll announcement on Friday, which will move the US dollar. In other words, expect to see a lot of choppy and volatile behavior, and therefore it’s likely that we continue a lot of indecisive behavior. However, by the end of the week we may see enough things line up to get some type of impulsive candlestick that we can follow, but at this point we just don’t have anything to trade off of other than noise and choppiness.

Underneath, the 50-Day EMA is approaching the $1975 region, which could offer a bit of support. After all, it is a widely followed technical indicator, but that’s not reason enough to buy gold. Adding more fuel to the fire in that general vicinity would be the fact that the futures market had a major gap in that area, which could offer a little bit of support as well. On the upside, the $2025 region continues to be an area where traders fight, as the market has been very noisy. I do believe that ultimately this is a situation where we do break higher, but the next couple of days could change a lot of things so therefore we need to keep an open mind. With this, position sizing will be crucial, as gold markets are very volatile to begin with and the next couple of days will only be more so than usual.

For a look at all of today’s economic events, check out our economic calendar.