Gold Price Forecast – Gold Markets Get Crushed on Friday

Gold Price Predictions Video for 17.04.23

Gold Market Technical Analysis

Gold markets have plunged lower during the trading session on Friday to reach down toward the bottom of a rising wedge, which also sits just above the psychologically important $2000 level. Keep in mind that the $2000 level will attract a lot of attention in general, and therefore it’s probably worth noting that there might be a bit of support here.

Even if we did break down below the bottom of the rising wedge, the measured move would be down to the 50-Day EMA, which is right at the $1950 level area and rising. I think this makes a significant amount of sense, due to the fact that there has been so much explosive growth to this market. Typically, when you see a candlestick that is this big, there’s a bit of follow-through and it is probably only a matter of time before we would see people attracted to this market. That being said, I also recognize that we have gone too far in a very short amount of time it seems, therefore this is probably something that’s necessary.

On the upside, the $2050 level continues to be an area of interest, as we have seen it offer resistance previously, and therefore it looks like we are ready to continue to look at that through the prism of potential breakouts. If we were to break above that area, then I think we probably go looking toward the $2100 level, which is a large, round, psychologically significant figure that has been tested multiple times.

If it gets broken above, then we start to reach the all-time highs, and therefore gold could really take off at that point. Yes, this has been a very negative candlestick for the Friday session, but just one candlestick does not suggest that the trend is over, and quite frankly it’s difficult to imagine a scenario where gold suddenly become something that people don’t want to own as the wealth preservation part of the trade has been so crucial this year. In it, the US dollar strengthening doesn’t necessarily help, but there are times when both can go off at the same time, just as we had seen during most of the 1980s.

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