Gold Price Forecast – Gold Markets Give Up Gains

Gold Price Predictions Video for 18.04.23

Gold Market Technical Analysis

Gold markets initially rallied to kick off the trading session on Monday but gave back the gains to show signs of weakness again. We are in the midst of a rising wedge, and if we do break down below the uptrend line, it’s possible that we could go down to the $1950 level. What I find interesting about that “measured move” is that there are couple of other things going on at the same time that could into the picture as well.

The first thing that I would notice is that in the futures market, there is a gap that has yet to be filled. Furthermore, we have the 50-Day EMA in the same area, so I think it all ties together quite nicely. There will be a bit of noise about the gold market breaking down below the $2000 level, but don’t let the noise from the markets make you think that it’s anything other than another level that’s no different than anything else, apart from the fact that there will be a little bit of psychology attached to it. Ultimately, this is a situation where we have formed a bit of an inverted hammer, and that in and of itself will attract a lot of attention.

I do think that gold continues to strengthen over the longer term, but it has run rather quickly to the upside, and therefore I think you’ve got a situation where you have to look at this through the prism of a market that could offer value rather soon, but you need to see some type of supportive action after it falls. I think you will get an opportunity to make a nice value-based trade, but patience will be necessary in order to find that value.

I don’t necessarily like the idea of chasing the trade, and I think a lot of people have been stuck in this market because of that. Given enough time, the opportunity should present itself, but just because I think that the market is going to continue to pull back in the short term, does not mean that I think should be shorting gold. I suspect that what we are seeing right now is a little bit of profit-taking after a nice trade.

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