Gold Price Forecast – Gold Markets Drift Lower in Holiday Trading

Gold Price Predictions Video for 20.06.23

Gold Market Technical Analysis

Gold has drifted a bit lower during the trading session on Monday, but at this point in time you should keep in mind that the Monday session was also Juneteenth, which is a major holiday in the United States, so a lot of liquidity would have been missing. Ultimately, we are still very much in a range, with the $1950 level being an area of interest, right along with the $2000 level above.

The 50-Day EMA is sitting in the middle of the consolidation area, so it has a lot to do with what we are seeing as well. Ultimately, the market is also looking at the 200-Day EMA underneath, which offers a certain amount of support. I think gold still has further to go one way or the other, as central banks are very much in focus, meaning that gold will be very noisy. The interest rate markets have a lot to say, and as interest rates rise, sometimes that will work against the value of gold, but gold also has a major influence via wealth preservation, as the market continues to see a lot of concerns around the world when it comes to global growth, and of course whether or not central banks will have to work against inflationary pressure.

Gold will continue to see a lot of noise, but in the end, the market will also have to pay attention to the US dollar, and its often negative correlation to the gold markets. The Federal Reserve chose to pause its interest rate hike this past week, and that could have people looking to buy gold as well. Either way, I think that shorting gold is going to be very difficult in this environment, and therefore I am looking for buying opportunities on small dips.

At this point, I think it wouldn’t be overly surprising if the market was to remain somewhat rangebound as summer markets do tend to be relatively quiet. All things being equal, this is a situation where we have a lot to sort out, but even if we were to break down from last week’s low, the 61.8% Fibonacci level in the 200-Day EMA both come into the picture as support also.

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