Gold Price Forecast – Gold Markets Rally Into the Fed

Gold Price Predictions Video for 27.07.23

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Wednesday, as it looks like the market is anticipating the Federal Reserve statement pushing the market higher. The 50-Day EMA underneath should continue to offer certain amount of support, as it is a technical indicator that a lot of people pay close attention to. If we turn around and fall from here, the 50-Day EMA typically will be chased by trend traders. However, if we break down below there it is likely that the market could then go down to the 200-Day EMA, after slicing through the 50% Fibonacci level. The 200-Day EMA is currently siting right around the 61.8% Fibonacci level, and is right at the same area where we had bounced from previously.

On the other hand, if the market were to turn around and take out the $2000 level, then it opens up a bigger move. After that, the market then would probably go look into the $2050 region, but we need to get through not only the Federal Reserve announcement, but also the European Central Bank announcement shortly thereafter.

If we were to turn around and break down through the 200-Day EMA, then the market is likely to continue going much lower, perhaps opening up a move down to the $1800 level. That being said, the market is very positive in general, so it’s difficult to imagine that we break down significantly, unless of course the central banks put a beating on the gold market itself. In general, this is a market that looks like it is ready to go higher over the longer-term, but I also recognize that we are going to see a lot of noise on the way out, so it’s going to be a situation where you will have to deal with a lot of volatility and keep your position size reasonable as you could get shaken out of the markets. That being said, I think that the odds are much more likely that we continue to go higher, but the $2000 level above seems to be significant resistance that will be difficult to break through, but once we do it should bring in more FOMO trading.

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