Gold Price Forecast – Gold Markets Pulled Back Slightly

Gold Price Predictions Video for 20.07.23

Gold Market Technical Analysis

Gold markets have pulled back just a bit during the trading session on Wednesday, as the market is digesting a bit of overly bullish pressure during the previous 24 hours. The 200-Day EMA continues to see itself as a potential support level, as we have launched from that level. All things being equal, the 50-Day EMA being broken above signified a potential breakout, and if we were to break above the previous candlestick from Tuesday, then it opens up the possibility of a move to the $2000 level. If we break above the $2000 level, then it’s possible that we continue to go looking to the $2050 level.

Short-term pullbacks will continue to be potential buying opportunities, as we have seen previously. If we break down below the 50-Day EMA, we could go looking to the 200-Day EMA underneath there, which is where the market has turned around to show signs of life. The 200-Day EMA of course is a major indicator that a lot of people pay attention to, and quite frankly most people look at it as a way to determine the overall trend. Any break down below that level then opens up the possibility of a big move lower, possibly dropping all the way down to the $1800 level underneath, which was the beginning of the entire leg higher.

Having said that, it does look that the market is trying to build up enough momentum to continue to go higher, and eventually will get there. With this being the case, the market will be more or less a “buy on the dips” type of situation, as it has been for the last several weeks.

Pay close attention to inflation and of course the US dollar. The inverse correlation between gold and the US dollar continues to be strong, therefore I think you need to pay close attention to it. However, they do deviate from time to time, and therefore watch interest rates as well, because if they start to fall again, that does lift gold as it helps the differential between paying storage fees for physical gold, and getting paid to hold bonds. If interest rates fall, it makes the precious metals a bit more competitive.

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