Gold Price Forecast – Gold Markets Plunge on Monday

Gold Market Technical Analysis

Gold markets have plunged during the trading session on Monday, as we have broken back below the $1680 level. By doing so, the market looks as if it is ready to go lower, and the fact that we are trying to close towards the bottom of the candlestick suggests that we have further to go. In general, gold markets have gotten ahead of themselves recently, and now it looks like the downtrend is trying to reassert itself. This will most certainly be the case if the US dollar continues to strengthen and of course we have interest rates rising going forward.

Now that we are back below the $1680 level, it’s possible that we will test the lows again, perhaps breaking all the way back down to the $1600 level after that. I have a longer-term target of $1500 and recognize that this is a market that has been challenged quite significantly, and put up a strong fight, only to turn around and give it all up again. This shows me that there has been some real damage done to the bullish attitude, and I think it’s probably only a matter of time before we see a further deterioration of the gold market.

The 50-Day EMA sits at the $1720 level and is falling from here. It offers a bit of dynamic resistance, almost like a bit of a trendline. Gold has a long way to go before things switch, and the biggest leading indicator will be the language coming out of the Federal Reserve, and any signs of cooling inflation. While inflation has dropped theoretically over the last couple of months, it is still far too high for the Federal Reserve to change its monetary policy.

Gold Price Predictions Video for 11.10.22

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