Gold Price Predictions Video for 11.04.23
Gold Market Technical Analysis
Gold markets have gapped lower to kick off the trading week on Monday, as it looks like a little bit of profit-taking is probably going on. If we continue to see this, it’s very likely that we will see a certain amount of value hunting in this general vicinity. After all, we are hanging around the $2000 region, which in and of itself makes for a nice headline.
That being said, if we break down below the $2000 level, and we very well could, the $1975 level is another area where you might see buyers. In that general vicinity, I would expect to see quite a bit of support. If we give that up, then we could go down to the 50-Day EMA. It’ll be interesting to see how this plays out, but you can see that we have had a massive impulsive move to the upside a couple of weeks ago, and now we have seen a lot of choppiness in more of a grinding channel. This is quite often what you will see at the end of an impulsive move to the upside, so I do think that a pullback makes quite a bit of sense, not only from a profit-taking standpoint, but from a technical standpoint as well.
This is not to say that I think gold is suddenly going to enter some type of bear market. I think it more or less speaks to the lack of momentum at this point, and those who got into gold a few weeks ago are more willing in an environment like this to take profits off a move that has been almost $200. That being said, I don’t like the idea of chasing this market, but I do recognize that if we break up above the gap, that would be an extraordinarily bullish sign and could send this market toward the $2050 level, which opens up the possibility of a move to the $2100 region. Either way, I don’t like selling gold, but I would not be a buyer until we get some type of supportive action on this pullback.
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