Gold Price Forecast – Gold Markets Plunge Below the 50-Day EMA

Gold Price Predictions Video for 16.02.23

Gold Market Technical Analysis

Gold markets have fallen significantly during the trading session on Wednesday, breaking below the 50-Day EMA. This is an indicator that causes a lot of noise, and the fact that we have sliced through it is very negative look. At this point, I suspect that gold probably has further to fall. This will be especially true if the US dollar continues to strengthen, as it typically has a negative correlation. Alternatively, if we turn around and break above the top of the candlestick for the trading session, then it’s likely that we could go back to the $1900 level.

Keep in mind that right around the $1900 level we had seen several inverted hammers, and this typically causes quite a bit of noise, and therefore you can see that the market had struggled quite drastically. The $1900 level being broken to the upside would obviously be very bullish, but the recent selloff that we had seen in this market certainly suggests that we have quite a bit of negative correlation.

When you look at this chart, you can see that the 200-Day EMA is near the $1808 level, which of course would be backed up by the $1800 level. The $1800 level is a large, round, psychologically significant figure, and a lot of people will be paying close attention to the area for a potential support level. Whether or not that holds remains to be seen, but it certainly looks as if we are ready to continue seeing selling pressure in the meantime. Those 2 big red candlesticks above show signs of serious negativity, and I think you need to look at it through that prism. Quite frankly, those types of moves very rarely happen in a vacuum, so that is worth paying attention to.

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