Gold Price Forecast – Gold Markets Pulled Back Slightly to Kick Off The New Year

Gold Price Predictions Video for 03-01-2024

Gold Markets Technical Analysis

If you look at the charts, you can see gold initially did try to rally during the day on Tuesday, but it looks like we have struggled with the $2,075 level. Breaking above that level opens up the possibility of challenging the huge candlestick from December 4th. But right now, I think it’s just a bridge too far for traders to continue to try to sort out what they’re going to do in 2024. It’s going to be the same type of situation that we had previously where people will be paying close attention to the yields in America, the 10-year yield being a major influence on gold.

If it starts to spike, that typically means bad things for gold because you can simply get paid to hold paper instead of storing gold. But also, you can see when yields drop that it is a run to safety, which gold can also serve as a safety asset. So with that being said, the negative correlation between rates and the US dollar will more likely than not be a major driver of the market. The $2075 level has been resistant to pressure multiple times in the past.

As such, it would not surprise me at all to see a little bit of a pullback here, but I think that ends up being a buying opportunity. Friday is the jobs number and that could really start to move markets again. Furthermore, you have to keep in mind that liquidity is probably still an issue for the next couple of days as traders are trying to put their positions on for the year. Senior traders come back from holidays, etc.

Underneath, I see the $2,000 level as a major floor in the market. Anything that breaks below there would change attitudes rather quickly, I suspect. But we have a long way to go between here and there, so I remain bullish and more of a buy on the dips trader. Even if I do enter the market, I will be very cautious with my position sizing initially, at least until we get beyond the jobs report on Friday.

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