Gold Price Forecast – Gold Markets Plunge After Hot CPI

Gold Market Technical Analysis

Gold markets initially tried to rally during the trading session on Thursday but turned around quite rapidly as the CPI numbers came out much hotter than anticipated in the United States. As an expected 0.2% month over month reading, it was a bit shocking to see 0.4% instead. We’ve also seen that in the PPI numbers previously, so therefore it means that the market is more likely than not going to continue to see a lot of pressure on gold as the interest rate expectations in the United States continue to spike, and of course the US dollar strengthens.

The 50-Day EMA sits at the $1716 level and is dropping. At this point, I think that is a soft ceiling for the market, and therefore I think if we rally at this point, that’s about as easy as possible to start fading short-term rallies. At the first sign of exhaustion, I will not hesitate to start selling gold, because quite frankly the $1680 level has been important multiple times in the past, but now that we have sliced through a couple of times, that area will have a lot less importance.

I do believe that gold eventually finds its way down to the lows, and then possibly even down to the $1600 level. Longer-term, I still believe that gold could find its way down to $1500, and that’s especially true if the US dollar continues to destroy everything in its path. In fact, it’s not until we get some type of reason to see the central banks change attitude before I would see a reason to start buying.

Gold Price Predictions Video for 14.10.22

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