Gold Price Forecast – Gold Markets Pull Back From the 50-Day EMA

Gold Market Technical Analysis

Gold markets have fallen significantly during the trading session on Friday to test the $1700 level. We have bounced a bit from there and showed a significant amount of interest. That being said, the $1700 level is going to be worth paying attention to, as it is the top of the previous consolidation range. If we were to break down below the $1700 level, then it’s likely that we go to the $1680 level. After that, then we are looking to the $1660 level. If we were to go through that, then we will continue to see plenty of negativity from a longer-term standpoint.

Keep in mind that gold is highly sensitive to risk appetite, interest rate moves in the United States, and of course the US dollar itself. That being said, the market is likely to continue to see that the downtrend continues given enough time. Quite likely, it is not until we break above the $1750 level that I would become bullish, and I do think that eventually, gold will be bullish given enough time. However, as long as we continue to see interest rates rise the way they have, it does work against gold as it’s easier to clip coupons on a bond than it is to pay storage for tons of gold.

Expect a lot of noisy behavior, but I do think eventually we get a continuation of the overall downtrend. Ultimately, testing the bottom could be targeted. The market will continue to be very noisy, but that’s nothing new for gold. Keep your position size reasonable, but I still think that we have the downside winning the battle.

Gold Price Predictions Video for 10.10.22

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