Gold Price Forecast – Gold Markets Continue to Tread Water

Gold Price Predictions Video for 21.04.23

Gold Market Technical Analysis

Gold markets have been very choppy over the last couple of days, as we continue to hang around the $2000 level, an area that of course is very important from a psychological and structural standpoint. With that being said, I do think that the gold market continues to attract a lot of inflows, therefore it remains a “buy on the dips” situation.

The hammer that was formed on Wednesday will continue to attract a lot of attention, with a 50-Day EMA snaking its way higher to show quite a bit of support near the $1950 level. This of course is an area where there was a gap in the futures market the people will continue to pay close attention to, so therefore I think it does offer a significant amount of support. Ultimately, I do think that the market goes back toward the highs, as there is a lot of concerns with wealth preservation at this point.

The US dollar of course has a negative correlation to the gold market, but at the end of the day if wealth preservation is the sole reason gold continues to rally, then I think you also have to keep an eye on other risk assets, to make sure that that’s exactly what’s going on. For example, we see energy markets falling, but at the same time seeing gold rising. In that environment, that tells me there’s something not quite right with the environment, and therefore it remains a wealth protection vehicle. In that environment, you can also have the US dollar go up at the same time, so don’t get too fixated on the currency correlation.

If we were to break down below the 50-Day EMA, it would of course be a very negative turn of events, possibly opening up the $1900 level as a target. I don’t necessarily think that’s going to be the easiest thing to happen, but it’s also possible that we get some type a huge flush after this massive run up. I still think there are plenty of buyers underneath though, so I still favor the upside, despite the fact that we will obviously have a lot of volatility and choppiness.

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