Gold Price Forecast – Gold Markets Drift Lower

Gold Market Technical Analysis

Gold markets have broken down a bit during the trading session on Wednesday as we have broken a minor support level near the $1650 level. At this point, it looks like it’s only a matter of time before gold finds its way back down to the bottom, and then perhaps breaking through it. If it does, then it opens up the possibility of a move down to the $1600 level. The $1600 level course is an important round figure, but I think that is only a minor blip on the radar, as we then find our way down to the $1500 level.

Regardless, at this point I think you are looking for opportunities to fade any rally in the gold market. I do think that given enough time we will see an attempt to recover, but that will be a nice shorting opportunity. Until the Federal Reserve changes its overall attitude, it’s difficult to imagine that gold will take off because the US dollar and the interest rates coming out of America will continue to be very strong. Keep in mind that they have a huge negative correlation to gold, and that should continue to be the case going forward.

That being said, if the Federal Reserve changes its attitude, it will be a major buy signal for gold. It’s very unlikely we get that anytime soon, so keep that in mind. However, once that happens, gold will be more of a “buy-and-hold” type of asset, something that I just don’t see happening anytime soon due to various macroeconomic headwinds out there, which of course inflation being the biggest one that will keep the Federal Reserve tight with her monetary policy. Look at rallies as an opportunity to short at the first signs of exhaustion.

Gold Price Predictions Video for 20.10.22

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