Gold Price Forecast – Gold Markets Tread Water

Gold Price Predictions Video for 31.03.23

Gold Market Technical Analysis

Gold markets have shown themselves to be rather choppy during the trading session on Thursday, as we continue to dance around just below the $2000 level. The $2000 level is a large, round, psychologically significant figure that will attract a lot of attention. That being said, I think you also have to look at this through the prism of a market that is simply trying to find out whether or not momentum can continue. I suspect that we are going to have some issues sooner rather than later, and therefore a little bit of a pullback makes a certain amount of sense.

On the futures contract, there is a gap that has yet to be filled near the $1950 level, so it does make a certain amount of sense that we may have to revisit that area. Breaking down below that level then opens up even further selling, possibly sending the market down to the 50-Day EMA which conveniently is placed at the round figure of $1900.

If we were to break down below $1900, that would obviously kick off some type of deeper correction. At this point though, I suspect that there will be plenty of people willing to buy gold out there as a means to protect wealth. The bond market of course has its part to play, and the bond market has been all over the place. Because of this, we have to be very cautious with how we play the market, and therefore I would suggest that perhaps smaller position sizing might be the best way to trade this market.

If we do break out to the upside and clear the highs that were made just a few days ago, we could go to the $2050 level. After that, the $2100 level would make a certain amount of sense as it is a large, round, psychologically significant figure and an area that has been important in the past. Anything above there then becomes a bit of a “buy-and-hold market”, and probably shows that we have even more stress in the financial system than we’ve seen recently. This of course would not be a good thing for most other assets.

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