Gold Price Forecast – Gold Markets Drop After Hawkish Jerome Powell

Gold Market Technical Analysis

Gold markets have fallen hard during the trading session on Friday, as Jerome Powell has come and gone, spooking the market abed. Ultimately, this is a market that I think sees a lot of negativity, but eventually, we will see the market have to make a bigger decision. The $1750 level is an area that is significant support, and an area we had bounced from previously. That being said, you can make an argument that we are trying to form a bearish flag, but ultimately, I think this is a scenario where you have quite a bit of noise. If we were to break down to a fresh, new low, then it’s possible that gold could unravel quite a bit.

On the other side, if we were to break above the 50 Day EMA, that could open up the possibility of a move to the $1800 level, and therefore it is probably worth taking a look at that area as being crucial and as a potential target if we do break higher. I don’t know that we can get above there easily, but if we were to break above it, then we would challenge the 200-Day EMA. Challenge the 200 Day EMA gets a lot of people interested, so it’ll be interesting to see how that plays out.

I do believe that the market breaking above the 200-Day EMA opens up the possibility of a long-term “buy-and-hold” situation, but quite frankly I think the Federal Reserve is going to do everything they can to tighten the economy, and that means higher rates going forward. That tends to work against the value of gold longer-term so keep that in mind.

Gold Price Predictions Video for 29.08.22

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