Gold Price Forecast – Gold Markets Test the Top of Consolidation Again

Gold Price Predictions Video for 12.07.23

Gold Market Technical Analysis

Gold markets have rallied a bit during trading on Tuesday, as we have tested the top of a consolidation box, where the 1940 level comes into play. At this point, I still believe that if we can break above the $1950 level, we can take off to the upside but it’s obvious that we have a lot of noise in the gold market.

That does make a certain amount of sense, because people are trying to guesstimate whether or not the Federal Reserve is going to continue tightening or not. If you believe the Federal Reserve, and it seems that plenty of people are willing to not do so, then there should be a couple more interest rate hikes, which puts downward pressure on gold due to the fact that you can get paid to hold paper instead of paying all of that money to store physical gold.

That being said, we are typically squeezing between the 50-Day EMA above, and the 200-Day EMA underneath. We are in an area where a lot of pressure is building, and eventually we will take off in one direction or the other. If we get an impulsive candlestick to the upside and above the 50-Day EMA, then it’s possible that we could go looking to the $2000 level above. The $2000 level is obviously a large, round, psychologically significant figure that a lot of people will be paying attention to.

On the other hand, if we were to break down below the 200-Day EMA, it has the market breaking below the $1900 level, and it opens up a much bigger move to the downside. In that general vicinity, you could see a move all the way down to the $1800 level, which is where the move has taken off from previously. All things being equal, this is a market that I think continues to see a lot of back and forth, and indecision as people continue to try to determine what happens with the US dollar, interest rates, and several other external factors. I don’t think this changes anytime soon, so therefore short-term trading is probably the best you can do at the moment.

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