Gold Price Forecast – Gold Markets Quiet on Wednesday

Gold Price Predictions Video for 31.08.23

Gold Market Technical Analysis

Gold has done very little during the trading session on Wednesday, as we are simply hanging around and trying to sort out whether or not we are going to go higher. The impulsive candlestick from the previous session on Tuesday of course was in direct reaction to the JOLTS Jobs Openings number in America, which was much lower than anticipated. By doing so, the market started to think about the idea that the Federal Reserve might have to slow down.

This is further exacerbated by the Consumer Confidence numbers missing by 10 points on Tuesday. This all comes together to the idea of possibly seeing the Federal Reserve at least slow down its tightening policy, but of course people tend to take these things to extremes, and we are already hearing about how the Federal Reserve will have to stop raising rates and perhaps even cut. That of course, is complete nonsense but it does encapsulate the mentality of the market.

You can see that we had formed a bit of a double bottom at the 200-Day EMA, so therefore I think it’s very likely that the gold market will eventually go look into the $2000 level above, an area that of course is a large, round, psychologically significant figure. Ultimately, this is a market that I think given enough time will continue to see upward momentum, and perhaps even break above the $2000 level. After that, we could go look into the $2100 level.

In general, I think gold will continue that negative correlation between bond yields and price, and as long as the interest rates continue to drop in America, then should continue to drive gold prices higher. Furthermore, it looks like the US dollar is a little bit soft at the moment, so that also gives gold a little bit of traction to the upside. In general, this is a scenario that has formed a nice bottom, and now the question is whether or not we can come to complete the overall “W pattern” that the chart is trying to show at the moment. Breaking above the 50-Day EMA was a big step in that direction.

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