Gold Price Forecast – Gold Markets Show Support

Gold Price Predictions Video for 26.05.23

Gold Market Technical Analysis

Gold markets have tested a major uptrend line during the trading session on Thursday, as we are hopping around the $1960 level. Just below, we also have the $1950 level which is backed up by that trendline, so all of that together does suggest that perhaps we are going to see a bit of support. On the other hand, you can take a look at the 50-Day EMA sitting just above, and it does suggest that perhaps there is a little bit of resistance as well. In other words, I think the market is basically in a state of flux, as it tries to figure out where its next move is going to be.

The US dollar course has a significant influence on what happens with gold most of the time, and that negative correlation seems to be coming back. Because of this, there could be some headwinds for gold but eventually I do think that the wealth preservation situation comes back, as traders are worried about the overall global economic situation and of course fiscal situation.

If we do break down from here, then the next major area of support is probably going to be close to the $1900 level, followed by the 200-Day EMA as well. All that should come together quite nicely for a “floor in the market”, as the trend has been extraordinarily bullish, therefore I think you get a situation where you could probably have a lot of noisy behavior, so therefore I think you need to be cautious about your position sizing. However, once we do get some type of clarity, the momentum will probably pick up quite drastically, and could send this market flying.

Keep in mind that gold does tend to move very quickly when somebody makes up their mind about putting money to work, so you will have to be diligent and make sure that you don’t overexpose yourself before the market decides which side of the equation is going to end up winning this battle. Hang on, because we are more likely than not going to see some type of explosive move in the short term.

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