Gold Price Forecast – Gold Markets Take a Breather

Gold Price Predictions Video for 14.07.23

Gold Market Technical Analysis

Gold markets have done very little during the trading session on Thursday, as we are sitting just above the 50-Day EMA. That being said, it’s probably going to be a situation where the market is trying to take a little bit of a breather after being shot straight up in the air during the previous session. Now that we are above the 50-Day EMA, we could go looking to the $2000 level above. The $2000 level is a large, round, psychologically significant figure, and an area where we’ve seen quite a bit of interest.

Underneath, if we were to break down below the 50-Day EMA, then it’s possible that we could go down to the 200-Day EMA, which is near the 61.8% Fibonacci level. This obviously is an area where you would see a lot of support, and I think is the bottom of the overall trend. The market has been very noisy, and therefore I think we may get a little bit of a short-term pullback. That pullback should be thought of as a potential buying opportunity from the longer-term perspective though, as the US dollar is struggling in general and that typically helps gold.

Furthermore, as inflation starts to drop a bit, that drives down the idea of the detrimental effects that the bond market can have on gold. All things being equal, if we have a short-term pullback there should be plenty of buyers and therefore people will look at it as value. That being said, if we turn around and take off to the upside and break above the $2000 level, then it’s possible that we could go look into the $2050 level.

If we were to turn around and take out the 200-Day EMA, that could open up a major drop down to the $1800 level, which would be a complete turnaround and wipeout of the move higher. I don’t expect to see that happen, but obviously that is something that you need to keep in the back of your mind just in case, as you always need to see both sides of the trade.

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