Gold Price Forecast – Gold Markets Stabilize During the Trading Session

Gold Price Predictions Video for 07.09.23

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Wednesday, as it looks like we are trying to stabilize after the selloff. Keep in mind that a lot of this comes down to the US dollar and what the greenback is doing, and it looks like we are losing a little bit of momentum in the greenback during the day. This helps gold, but whether or not it turns things around remains to be seen.

After all, that was a pretty nasty candlestick for the Tuesday session and this week is going to be interesting as we are owing to be witnessing more volatility and perhaps more importantly, volume, coming into the market after the summer holiday. In other words, this is a situation where we have a lot of crosswinds going on at the moment, therefore it’s likely that we will see a lot of choppy behavior in this general vicinity.

Underneath, we have the 200-Day EMA, and then of course the $1900 level that will both offer support. Really at this point, the $1900 level is what you need to pay the most attention to, because if we were to break down below there, it would show complete breakdown of support and could send the gold market down another $100 rather quickly. On the other hand, if we turn around and take out the highs of last week, then it’s possible that the gold market could go looking to the $2000 level. Ultimately, this is going to come down to not only the US dollar, but also the interest rate situation in the United States. Therefore, you need to pay attention to the interest rate markets in America, because as rates rise, that makes gold less attractive as you can get paid more to simply hold paper instead of storing gold.

On the other hand, if we do see interest rates drop, then you will see gold start to rally. Longer-term, I do like the idea of owning gold but the question now is whether or not we need to pull back to the $1900 level before turning around and buying, or if we see some type of rally from here?

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