Gold Price Forecast – Gold Markets Stalling

Gold Price Predictions Video for 20.10.23

Gold Market Technical Analysis

The gold market has stalled a bit during the trading session on Thursday, as it looks like we are continuing to see a lot of geopolitical concerns around the world that could drive gold higher, but in the short term it looks like we may need to take a bit of a breather. The $1950 level underneath is an area that I think a lot of people will be paying close attention to, and therefore it could offer a bit of support. If we break down below the $1950 level, then we could go down to the 50-Day EMA.

On the other hand, if we break above the top of the candlestick from the previous session, then it’s likely that we could go looking to the $2000 level. The $2000 level is a large, round, psychologically significant figure that a lot of people will be paying attention to, and of course has offered significant resistance in the past. In other words, I don’t know how much further upside we have, unless of course we have a lot of concerns about geopolitical risk that continue.

It’s probably worth noting that the bond market has its say as well, and if interest rates continue to climb in the United States, that is almost certainly going to work against the value of gold too. This is a market that will continue to be very noisy, but I have a difficult time selling this market until we break back down below the 50-Day EMA. This is a market that you cannot chase because it’s obviously moving on pure emotion at the moment, as the war in Gaza continues to be front and center as to how people trade.

Longer term, we will have to wait and see whether or not 2000 can hold as resistance if we continue to go higher, but until something changes, I have to look at this as a market that is simply going to be very difficult to get your hands around, but it looks like it’s gotten bullish enough that more of a “buy on the dip” strategy on short-term charts probably works out.

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