Gold Price Forecast – Gold Markets Plunge Into the Weekend

Gold Price Predictions Video for 24.04.23

Gold Market Technical Analysis

Gold markets have fallen somewhat hard on Friday, as we have broken well below the $2000 level, and now it looks like we are testing a little bit of support just below. It’s worth noting that the 50-Day EMA is right around the $1950 level, where the futures market had formed a gap. I do think that gold pulling back a bit here makes a certain amount of sense, because when you look at the longer-term charts you can see that this is an area that’s been important multiple times. In fact, we have failed between $2000 and $2100 twice before, so it’ll be interesting to see if we can finally break out.

Even if you are extremely bullish of gold, and I am at the moment, you have to recognize that markets cannot go in one direction forever. They do need the occasional pullback in order to find fresh buyers or at least more confidence. I think at this point we will continue to see gold find buyers on dips, but I think dips are coming. At the very least, you need to see the market consolidate for a while and work off some of the excess froth after a straight shot in the air from the lows.

Do not get overly enamored with the US dollar/Gold negative correlation story, because both can go up at the same time. This will be especially true if everybody is running for wealth preservation because they will be buying US Treasuries at the same time, which of course demand US dollars. That being said, if the US dollar starts to sell off rather significantly, that can help gold from time to time.

I think this is a situation where you are trying to find value, it just simply picking it up as it appears. I would not get huge in any position at this point in time, because I would anticipate more volatility. We see plenty of volatility in other markets, there’s no reason to think that gold is going to be any different over the next several weeks, especially as we head into summer which can be rather quiet for markets in general.

For a look at all of today’s economic events, check out our economic calendar.