Gold Price Forecast – Gold Markets Pull Back Slightly

Gold Price Predictions Video for 12.01.23

Gold Market Technical Analysis

Gold markets have initially rallied during the trading session on Wednesday, testing the top of a major channel, as we await the CPI numbers coming out on Thursday. The Consumer Price Index number will be followed closely, because quite frankly the Federal Reserve is more likely than not going to have to react to them. If they are hotter than anticipated, that could send the dollar soaring, which would be a little bit of a drag for gold.

Having said that, you should also keep in mind that the overall correlation between gold and the US dollar has broken down a bit, meaning that we have a chance that any negative effects that the US dollar has on the gold market might be short-lived. Clearly, gold is in an uptrend, and I certainly would not want to fight that trend at the moment.

Any pullback at this point in time will more likely than not offer a bit of value the people are willing to take advantage of. Of special interest will be the $1850 level, which coincides roughly with the uptrend line of the channel that we are in. Because of this, I’m hoping that we do get a pullback to that area and then subsequently some type of supportive behavior. Longer-term, gold looks as if it is hell-bent on going to the $2000 level sometime this year. As traders use it for wealth preservation, that does make a lot of sense considering everything that we have seen. With this, buying on dips will continue to be the way I look at this market overall, as that has worked for so long.

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