Gold Price Forecast – Gold Markets Continue to Walk Along 200-Day EMA

Gold Price Predictions Video for 01.12.22

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Wednesday, as we wait for some type of signal as to what to do next. Ultimately, the market is dancing around the 200-Day EMA, trying to figure out whether or not it’s got enough juice to go higher. The gold market of course has a negative correlation to interest rates most of the time, but it does not have to. Furthermore, you also have to keep in mind that gold markets have recently shot straight up in the air, so a little bit of consolidation and digesting might be the way to go.

The $1800 level above is a significant resistance barrier, and breaking above that will take a certain amount of momentum. If we do break above there, then I think it’s likely that we will see the gold market go much higher, perhaps the $2000 level over the longer term. On the other hand, if we turn around and start falling again, it’s possible that we could go down to the 50-Day EMA, which is near the $1720 level. I think this is a market that continues to be very noisy overall, so you do need to keep that in mind.

This week features the Core PCE figures, one of the Federal Reserve’s favorite inflation metrics, and of course a speech by Jerome Powell and the jobs number on Friday. All of this could move this market, so I think part of what we are seeing here is that gold is in a bit of a “holding pattern.” Expect noisy and somewhat sideways behavior until suddenly we break in one direction or the other. The next couple of days could be more choppy than anything else.

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