Gold Price Forecast – Gold Markets Hesitate Ahead of FOMC

Gold Price Predictions Video for 23.03.23

Gold Market Technical Analysis

Gold markets have been very quiet during the trading session on Wednesday as we are waiting for the FOMC statement and results. After all, the world right now is worried about what the central banks are going to be doing, and the Federal Reserve is by far the biggest one. We have recently seen the ECB hike rates, as well as many other central banks around the world. With that being the case, it’s probably worth noting that the Federal Reserve is expected to raise rates, but now it seems as if most traders are expecting a 25 basis point move.

If they do in fact move more, that will be extraordinarily bullish for the US dollar, and could put a lot of heaviness into the gold market. However, the Federal Reserve also is being screamed at by the market that it needs to start cutting rates, and this has lifted gold. Regardless, gold got too far ahead of itself, and has now recently pulled back. That does make a certain amount of sense, due to the fact that the momentum will have eventually failed. After all, markets move back and forth over time, and cannot stay parabolic forever.

Another thing that may have caused issues is the fact that we had broken above the psychologically important $2000 level, and therefore a certain amount of options barriers may have been at play as well. That being said, we have sold off quite drastically after breaking above that area, losing roughly $50 in the course of 2 days. With this being the case, we may be setting up for another move to the upside, but we need to get the Federal Reserve out of the way before being comfortable putting money to work.

Because of this, we may even get the opportunity to buy gold at a cheaper price, perhaps closer to $1900 where the 50-Day EMA may come into the picture to intersect. Regardless, I do not have any interest in shorting gold currently, due to the fact that there are so many concerns about wealth preservation at the moment, driving traders into the gold market in order to protect themselves.

For a look at all of today’s economic events, check out our economic calendar.