Gold Price Forecast – Gold Markets Recover After Initial Fall

Gold Price Predictions Video for 24.10.23

Gold Market Technical Analysis

Gold markets pulled back a bit during the trading session on Monday, but then turned around to recover again as there are plenty of reasons to believe that gold will continue to attract attention. Ultimately, when you look at the gold market, you can see that we have been very bullish over the last couple of weeks, which of course makes a lot of sense considering that there is now a war in the Middle East, and people have been using it as a safety trade. All things being equal, gold is the safety trade that most people run to first. Having said that, we are a little bit overdone at this point, and it’s obvious that the $2000 level continues to offer a little bit of noise.

At this point, the market needs to pay attention to the fact that we formed a massive shooting star in that area, but breaking down below the shooting star was repudiated rather quickly, so now it looks like we are going to consolidate in this general vicinity. If we were to break down below the low of the trading session on Monday, then it is likely that we could go down to the $1950 level.

If we can break above the shooting star from the Friday session, then it allows the market to threaten the recent highs, perhaps opening up the possibility of a move to the $2050 level, maybe even higher than that. At this point, I think all it would take is another negative headline to throw more traders into this market. Having said that, we are so overextended that I think a pullback makes quite a bit of sense.

The pullback will more likely than not be an opportunity to get long again, but having said that, the market will continue to move based on the latest headlines more than anything else. Having said that, you also have to keep in mind that bond yields come into the picture as well, as rising bond yields work against gold typically, as does a strengthening US dollar, although it is not a 100% negative correlation all of the time.

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