Gold Price Forecast – Gold Markets Give Up Initial Gain for the Day

Gold Price Predictions Video for 04.12.23

Gold Market Technical Analysis

Gold markets have initially tried to rally during the trading session on Friday but found the $2050 level to be a bit too much to overcome. It’s an area that’s been important multiple times so it should not be a huge surprise to see gold struggle here. Furthermore, we are overbought by just about any metric you can use, so it does make quite a bit of sense that we would see this market pullback, in order for traders to collect a little bit in the way of profit.

On the other hand, if we were to break above the $2050 level, then it’s likely that we go much higher. At that point, I think gold will have broken out for good, and traders will start to chase it. I think that’s a situation where it hits still a bit tired and therefore think we’ve had a situation that you have to be very cautious shorting this market, but I think it’s probably better off being a market that you buy on dips. After all, buying on this dips has been the way going forward, and I think is probably only a matter of time before we see that jump back in. All things being equal, the $2000 level will continue to be crucial. The $2000 level of course is a large, round, psychologically significant figure, and an area that has been significant resistance in the past. In other words, there should be a lot of “market memory” coming into the picture.

In general, I think this is a market that has gotten a little overdone, so a pullback makes sense, especially if the US dollar gets a bit of a reprieve, like we have seen bullish pressure entering the US dollar during the trading session on Friday. Pay attention to interest rates, because the interest rates rising again would be very negative for gold, and they are a little overdone at this point. Because of this, I think it’s probably only a matter of time before we get a pullback, but at the same time, I think the uptrend remains very much intact.

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