Gold Price Forecast – Gold Markets Quiet on Labor Day

Gold Price Predictions Video for 05.09.23

Gold Market Technical Analysis

Gold markets initially tried to rally a bit during the trading session on Monday but gave back those gains to show signs of hesitation. At this point, the market is likely to continue to see a lot of noisy behavior, as there are a lot of questions as to how the Federal Reserve is going to treat the economy and perhaps monetary policy. At this point, the market seems to be comfortable hanging around the $1970 level, and we did of course see an attempt to break out on Friday, but then turned around to show signs of hesitation.

The Monday session of course featured Labor Day, so the lack of liquidity would be a major issue. Because of this, I don’t read too much into the candlestick on Monday, but it does look like we are probably more likely than not going to pull back in order to find support. On the other hand, if we do break above the Friday candlestick, then we go looking to the $2000 level. The $2000 level of course is a large, round, psychologically significant figure, and an area where you would see a lot of noisy behavior. If we can take that out, then it’s likely that the market could go looking to the $2100 level.

Alternatively, if we were to break down below the 200-Day EMA, then we would challenge the $1900 level. The $1900 level of course is an area that previously has been supported, and therefore I think a lot of people would be paying close attention to that area. If we were to break down through there, then we could see a major selloff, but right now it does not look likely to happen. That being said, the market is likely to continue to see a lot of noisy behavior, and therefore it’s likely that you need to be cautious with your position sizing as we try to sort things out. Eventually, things will become a little bit more clear, but right now, it looks like we still have some fighting to do.

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