Gold Price Forecast – Gold Markets Gap to the Upside

Gold Price Predictions Video for 10.10.23

Gold Market Technical Analysis

Gold markets have gapped significantly to kick off the trading session on Monday, after the invasion of Israel by Hamas over the weekend. As war certainly has come to the region, this has people looking for safety any way they can find it. Gold of course is considered to be a safety asset over the long term, so it’ll be interesting to see how this plays out. I do think that we are still very much in a downtrend, so whether or not this lasts is a completely different question altogether.

The 50-Day EMA is starting to approach the 200-Day EMA, and it looks like we are getting ready to have the so-called “death cross” form. This of course is a very negative sign and it means that longer-term traders may look at this as a technical signal to get involved as well. If that’s going to be the case, then I think it’s probably only a matter of time before we see gold dropped back down to where it was, and then possibly even the $1800 level underneath that. $1800 of course is a large, round, psychologically significant figure, and an area where I think a lot of attention will be paid due to the fact that it is previous support, and one would have to assume that there is a lot of options trades just waiting to happen in that general vicinity.

However, if we continue to rally from here, then we have to keep in mind that the $1900 level above could come into the fray, offering a bit of resistance as well. At this point, traders will continue to look at this through the prism of whether or not they can feel secure in owning anything other than the US dollar, and of course interest rates have a major influence on what happens next.

After all, higher interest rates make gold very unattractive, as it’s easier to make money just sitting on paper than it is to pay storage fees for massive amounts of metal. Because of this, I’m not overly excited about putting huge positions on this market, due to the fact that the potential for volatility is going to be very high over the next couple of days. I still believe we are in a downtrend but certainly a shot has been fired across the bow.

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