Gold Price Forecast – Gold Markets Pull Back

Gold Price Predictions Video for 02.08.23

Gold Market Technical Analysis

Gold markets have pulled back a bit during the trading session on Tuesday, as we continue to see a lot of noisy behavior, and of course the $2000 level continues to be a major barrier to overcome, and of course as we have the jobs number coming out on Friday, it’s likely that the gold markets will continue to be sensitive to the idea of what the Federal Reserve will do, and of course the job market will have a major input on what happens next. With this being the case, the 50-Day EMA sits below, and it will show stability and perhaps support.

Markets could turn around at this point, but if they do, the market could break out to look toward the $2050 level. That being said, the market breaking above that level would be a sign that we have the next leg higher, but it would take quite a bit of momentum to make that happen. I think in the short term, we continue to consolidate quite a bit as the central bank’s attitude will continue to be front and center. You should also pay close attention to the bond markets, because if interest rates start to drop, that does help gold under most circumstances. On the other hand, if they rise, traders will quite often prefer to hold paper instead of paying storage fees for battle.

Either way, this is a market that I think continues to be bullish overall, but it’s more or less going to be a “buy on the dips” situation, and therefore I think that pullbacks that show signs of support are more likely than not going to be an opportunity to get long. Even if we break down below the 50-Day EMA, then we could go down to the 200-Day EMA, which a lot of longer-term traders pay close attention to determine the overall long-term trend. As long as we stay above there, there is quite a bit in the way of hope. On the other hand, if the market were to break down below the 200-Day EMA, then it’s likely that gold could drop all the way down to the $1800 level. Expect a lot of volatility in the meantime.

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