Gold Price Forecast – Gold Markets Plunge Into Support

Gold Price Predictions Video for 08.05.23

Gold Market Technical Analysis

Gold markets have fallen rather hard on Friday, after showing signs of exhaustion on Thursday if we are being honest. At this point, the market then tested the previous consolidation area, where it has had buyers stepping back into the market. With that being the case, it’s very likely that the buyers will continue to attempt to push gold higher, as we have seen such a strong trend for so long. The fact that we fell as hard as we did on Friday may have shaken out a lot of the weak hands, which would be a good thing for the market as well. After all, the market had gotten a bit too complacent, so a lot of times that leads to negative results.

Underneath, we have the 50-Day EMA which is just below the previous consolidation area, so I think it makes a certain amount of sense that it now offers a bit of a dynamic floor in the market. Furthermore, there are a lot of concerns around the world when it comes to wealth preservation, and that’s always a good thing for gold as it is the go to asset in those times.

I look at this sudden plunge as a nice buying opportunity and we are starting to see buyers come back into the market later in the day. What will be particularly interesting is to see what happens over the weekend with the regional banks in the United States, as there are so many out there that are in a lot of trouble. Perhaps traders will try to hang on to gold for safety over the weekend, using this massive drop during the day as a potential value and entry point into a market that has been sustainably bullish for several months now.

Do not get me wrong, the market is probably going to continue to be volatile and difficult, but I certainly would not want to step into the market and start selling now. I suspect that most of the very bearish pressure that we had seen probably had to do with forced liquidation of larger funds you had to raise capital in order to cover other positions.

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