Gold Price Forecast – Gold Markets Shoot Higher for the Day

Gold Price Predictions Video for 21.12.22

Gold Market Technical Analysis

Gold markets have rallied again on Tuesday, as it appears that the $1800 level and the channel that we have been trading in are going to be defended. Because of this, and the fact that the candlestick is so strong, I anticipate that we may try to make a move to break out to the upside. However, you should also keep in mind that the lack of liquidity could be a major issue as well. Remember, a lack of liquidity can work in both directions, or it can just simply make the market do nothing.

I would be somewhat hesitant about putting too much money to work just a few days before Christmas, and next week is probably going to be even worse. Because of this, I believe at this point it’s a situation where we need to look at this through the prism of following the channel, or perhaps breaking down through it. If we were to break down below the $1800 level, we could drop another $20 without much of an argument, as it opens up the possibility of a move down to the 200-Day EMA.

For the longest time, we were focusing on interest rates but now it appears that the gold market may be focusing on wealth preservation, which is a more traditional role for it. If that’s going to be the case, gold should perform fairly well in 2023, and perhaps some traders are just simply trying to step in front of the move right now. Obviously, you need to be cautious with your position size as it is the holiday season. In this environment, moves can be quite brutal.

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