Gold Price Forecast – Gold Markets Recover Slightly on Friday

Gold Price Predictions Video for 31.07.23

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Friday, as we continue to go higher over the longer-term, despite the fact that we had a very vicious selloff during the Thursday session. Quite frankly, I think a lot of people are going to continue to look to gold for safety given enough time, but the ECB had people a bit nervous on Thursday due to the fact that they suggested that the economy was going to slow down in the EU.

Regardless, I do think that this remains a “buy on the dips” type of situation, with the 50-Day EMA underneath offering support. All things being equal, the market is likely to continue to see a lot of noisy behavior, so therefore you need to be cautious about your position sizing in this market, because it does tend to be very volatile. That being said, I don’t have any interest in shorting this market, it’s just far too strong. In fact, it’s not until we break down below the $1900 level that you can have that argument, and therefore is just simply a matter of picking up a little bit of value every time it shows up.

The $2000 level of course has a major influence on what happens in the market, and if we can clear it successfully on a daily close, then we could go looking toward the $2050 level, possibly even higher. Pay attention to the US dollar, because it does typically have a bit of a negative correlation to gold, although that correlation breaks down from time to time. It does not necessarily have to be a huge negative correlation either, as it does fluctuate occasionally.

If we were to turn around and break down below the 200-Day EMA, then it opens up a move all the way down to the $1800 level, but that’s not the base case scenario that I see going forward. All things being equal, expect a lot of noisy behavior, keep your position size reasonable, and look for opportunities to buy this market, as selling it is just too difficult to do at the moment.

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