Gold Price Forecast – Gold Pulls Back to Moving Average

Gold Price Predictions Video for 17.10.23

Gold Market Technical Analysis

Gold markets have pulled back a bit during the trading session on Monday, as the overbought condition from Friday abated. That being said, it looks like the 200-Day EMA is of course offering a little bit of support, so it will attract a certain amount of attention. Ultimately, if we break down below the 200-They EMA, it’s likely that the market will continue to correct, at least to the $1900 level.

All of that being said, it is difficult to go short of a market that rallied 3 ½% during the previous session. At this point, I think we are overbought, but whether or not we get a true correction remains to be seen. In fact, I would not be comfortable shorting this market until we break down below the $1900 level again. Alternatively, if we turn around a break above the $1950 level, gold could go looking to the $2000 level after that.

It’s probably worth noting that we are at the apex of the previous triangle, so we are essentially in an area where the market is going to be doing a lot of fighting. Because of this, I would be very cautious about putting a lot of money into the market, and I would also keep a close eye on interest rates in America, because the higher they go, the lower gold goes, at least that’s the typical correlation. It certainly has been the way the market has been behaving recently, so it is something worth paying attention to.

The size of the candlestick on Friday is very telling, and of course volume spiked as well. It is because of this that I think the market is trying to do everything he can to change directions, but the question at this point is whether or not it can break through all of that previous noise? Pay attention to the peripheral markets, meaning the bond markets, and how they behave, as well as the US dollar. It’s worth noting that the US dollar can and will rise right along with gold at times, especially in geopolitical situations like we have now. In other words, you can’t just trade the “higher dollar, lower gold” scenario. You need to be a bit more nimble.

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