Gold Price Forecast – Gold Markets Drop on Tuesday

Gold Price Predictions Video for 17-01-2024

Gold Markets Technical Analysis

As you can see, the gold market fell significantly during the trading session on Tuesday but I think we’re still in the same pattern. For that reason, I’ll be looking for a buying opportunity as we pull back towards the 50 day EMA and the uptrend line.

Gold still has a lot of things that could push it higher, declining interest rates would be one, but we also have a lot of geopolitical concerns. Let’s be honest here, the geopolitical situation around the world right now is messy to say the least, and therefore I think you’ve got a situation where gold probably is in most people’s portfolios to one extent or another.

The $2075 level above is going to be a major resistance barrier that’s going to be difficult to take off to the upside. But once we do break above there, the market will probably have a lot of FOMO trading. All things being equal, I think this is a scenario where value hunters continue to come back. If we break down below the 50-day EMA and the uptrend line, the $2,000 level underneath would be your support. Anything below there has people thinking that perhaps gold is going to fail, but right now we are still very much in an up trending channel, and of course, a lot of central banks around the world look like they’ll be loosening monetary policy rather soon, and if that’s going to be the case, that obviously makes a lot of sense that gold would do fairly well in a loose monetary policy environment.

That being said, I am going to scale into a position, not necessarily jump all in right away, and therefore be a bit cautious on my entry. With the noisy geopolitical and bond market situation right now, I think you have to look at gold with a certain amount of caution, but also recognize that over the longer term it is more likely than not will continue to attract a lot of attention. By scaling in, you can be a little bit more resilient and hang on to a position.

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