Gold Price Forecast – Gold Markets Hover Around 50-Day EMA

Gold Price Predictions Video for 26.07.23

Gold Market Technical Analysis

The gold markets have done very little during the trading session on Tuesday, as we continue to hang around the 50-Day EMA. This does make a certain amount of sense, as the European Central Bank, the Federal Reserve, and the Bank of Japan all have interest rate decisions this week. Because of this, there will be a lot of noise in the gold market, as traders try to discern where inflation might be going, and more importantly, monetary policy from the 3 biggest central banks in the world.

If we do pull back from here, then it’s possible that we could drop down to the 200-Day EMA, which is sitting right around the $1910 level, and is flattening. With that being the case, I look at the 200-Day EMA as a bit of a floor in the market, and if we can break down below that floor, then it really would start to change things, perhaps opening up the gold market for a drop down to the $1800 level. That being said, I think it takes quite a bit of momentum to make that happen, so more likely than not, we would see that area hold.

On the other hand, if we turn around and rally from here, we could be looking at a move toward the $2000 level, although I think it is going to be difficult to break above. If we do, then it’s almost certain that the market will go looking to reach the highs again. All things being equal, this is a situation where the market will continue to be very noisy, therefore you need to keep your position size reasonable. Keep in mind that Wednesday will feature the Federal Reserve, but less than 24 hours later we will have to deal with the ECB as well. While the Bank of Japan will probably be less impactful, it can have an effect on gold as well. In other words, I do believe in the upside but I also recognize that the next couple of days could be very noisy to say the least. Caution is the better part of valor at the moment, so keep your position size reasonable.

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