Gold Price Forecast – Gold Markets Rally Into the Weekend

Gold Price Predictions Video for 06.03.23

Gold Market Technical Analysis

Gold markets have rallied significantly during the trading session on Friday, to reach the 50-Day EMA. Alternatively, this is a market that I think will continue to see a lot of volatility, and of course it’s worth noting that the 50-Day EMA is an indicator that a lot of people pay close attention to. If we can break above the 50-Day EMA on a daily close, then it’s likely that we could go much higher. At that juncture, I anticipate that gold will continue to go towards the $1900 level, which is a large, round, psychologically significant figure.

Another thing worth paying attention to is that the $1900 level has been important multiple times, as we have formed several inverted candlesticks in that area. That to me looks like a short-term ceiling, but if we could break above there, then it really could take off to the upside. That being said, I think there’s a lot of selling pressure above so I don’t know how much longer we go above there. If we do, we would need to see some type of fundamental reason for the market to truly take off to the upside. After that, we could be looking at the $2000 level, but I think it would be a bit of a stretch to say the least.

The alternate scenario is that we break down below the 200-Day EMA, testing the $1800 level. The $1800 level is a large, round, psychologically significant figure, and I think probably an area where you would see a lot of options traders come in and step into the marketplace. Falling below there more likely than not opens up a move down to the $1750 level, which is a 61.8% Fibonacci level. Anything below their gets really ugly, and we drop down to the $1666 level.

Keep in mind that the US dollar can work against the value of gold, but at the same time you can see that the decision to protect wealth can have traders buying both. Interest rates have a part to play as well, but recently we have seen gold go back to its safe haven status more than anything else.

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