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Gold Price Forecast – Gold Markets Look Extended
Published: Apr 7, 2023, 15:56 GMT+00:00
Gold markets had rallied quite significantly over the last couple of weeks but were closed on Friday. That being said, there’s still a lot to glean from the chart.
In this article:
Gold Price Predictions Video for 10.04.23
Gold Market Technical Analysis
Gold futures markets were closed on Friday, but that doesn’t mean that we can read a lot of information from this chart. After all, the $2050 level has been an area of significant selling pressure, and we formed a massive spending top in that area. If we do pull back from there, then the market could go looking to the $2000 level, which of course is a psychologically important figure, and therefore I think that will be an area that we continue to see buyers jump in. Even if we break down below there, it’s likely that we could go to the $1975 level. Either way, gold has seen a lot of noisy behavior, so it makes quite a bit of sense that we would eventually get a certain amount of value hunting.
There are a lot of people out there that are betting on the Fed cutting rates, then it makes a lot of sense the gold would continue to go higher, as they believe that the US dollar will continue to fall. That being said, the market is also seeing a lot of wealth preservation at the moment, which of course makes gold attractive as well. Either way, a lot of this buying pressure is far from over, and unless we see some type of major shift toward the US dollar, it doesn’t seem likely that gold will be pounded. Even if that happens, a lot of it will come down to why the US dollar is picking up strength, because both can rally, despite what you may have heard.
Looking forward, it does look like we are more likely than not going to eventually break out, but it’s not necessarily going to be something easy to make happen. It will take a lot of effort; therefore, I think we have quite a bit of volatility ahead of us. As we saw a huge move to the upside, we then started to see a lot of choppiness as we hung around the $2000 level. On the other hand, if we do pull back from here, it’s likely that there will be plenty of people interested.
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About the Author
Christopher Lewisauthor
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.
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