Gold Price Forecast – Gold Markets Take Off in The Early Hours

Gold Price Predictions Video for 16.10.23

Gold Market Technical Analysis

Gold markets have rallied rather significantly during the early hours on Friday, as we have seen a run toward safety. Ultimately, the gold market is now threatening the major moving averages of both the 50-Day EMA, and the 200-Day EMA indicators. These are technical signals that a lot of people will pay close attention to. Ultimately, the question now is whether or not we can continue to go much higher, or if we see some type of exhaustion before we see the market turnaround.

The $1900 level is an area that a lot of people have paid close attention to recently, and the fact that we have broken above a large, round, psychologically significant figure could send more money flowing into this market. However, I’d be cautious about any type of exhaustion around the moving averages, and therefore it’ll be interesting to see how this closes heading into the weekend. If we close below the $1900 level, then I anticipate that the futures markets will be signaling a drop.

On the other hand, if we can clear the moving averages on the daily close, that would be an extraordinarily strong signal. In general, I do think that gold takes off over the longer term, but it may take some time to make that happen for a bigger move. There is a lot of noise just above, so I still think you have the possibility of the market rolling over again. That being said, those couple of levels are worth paying attention to, as it could serve as a bit of a guidepost for where we go next. Regardless, breaking above the top of the shooting star from the Thursday session was a really good start for the bulls to make a statement.

Pay close attention to bond yields in the United States because they have had a negative correlation for some time. That doesn’t mean that they have to move higher for gold, but certainly comes into play. If we break down below the bottom of the candlestick from the trading session on Friday, that would be an extraordinarily negative sign and I think it would bring in more downward momentum going forward.

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