Gold Price Forecast – Gold Markets Show Signs of Exhaustion

Gold Price Predictions Video for 05.05.23

Gold Market Technical Analysis

Gold markets have shot higher during the trading session on Monday, gapping at the Asian open, and rocketing to a fresh, new high. However, we have given back quite a bit of this gain, which does make a certain amount of sense considering that you could make an argument for gold being a little overdone to the upside in the short term. That does not mean that I expect some type of massive selling opportunity, just that the market probably needs to cool off just a bit before we get the next surge higher.

Quite frankly, I have no interest whatsoever in shorting this market, and I do believe that the $2000 level underneath now becomes the “floor in the market”, and I do think that it will continue to be respected. Furthermore, the 50-Day EMA is racing to reach that area, so I think we will get an opportunity to buy gold on some type of pullback. If we get that pullback, there should be plenty of people out there willing to take advantage of “cheap gold”, as the trend has been so obvious. Ultimately, this is a market that I think given enough time probably breaks above the $2100 level, and if we get above there, then it becomes more of a “buy-and-hold” type of market.

If the economic conditions remain very weak, it does make a lot of sense that gold will continue to attract a lot of money as far as wealth preservation is concerned, which has been a major driver of what’s been going on in gold over the last year. That being said, we could have an area of consolidation just waiting to happen, but I still favor the upside. You can also make an argument that a lot of the massive gain early in the day was during a very thin time of the market, and therefore it may have been a little over exaggerated. Nonetheless, it’s still the same direction that we have been trading for a while, and it does make a certain amount of sense that we continue.

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