Gold Price Forecast – Gold Rolls Over

Gold Price Predictions Video for 08.03.23

Gold Market Technical Analysis

Gold markets have fallen rather hard during the trading session on Tuesday as the area around the 50-Day EMA continues to offer a lot of technical resistance. Because of this, it is more likely than not going to be a situation where we may try to reach down toward the 200-Day EMA, an area that recently has seen some support. The US dollar was relatively strong during the day, so it does make a certain amount of sense that gold would suffer at the hands of greenback strength.

If we do rally from here, the area around the $1860 level has proven itself to be somewhat difficult, so therefore we would have a bit of a fight on our hands in that region. Above there, then you have the $1900 level, an area that produced 4 inverted hammers in a row after the massive selloff at the top. Because of this, I think it would be very difficult to get above that area, and then of course you have to deal with all of the selling pressure above there.

While I am not overly bearish on gold, I think we have a lot of work to do to reestablish the uptrend. The most likely of scenarios will be more of a choppy situation, as we are between the 2 major moving averages, and of course there are so many questions out there about monetary policy. Keep in mind that Jerome Powell is speaking in front of Congress during the day, and that will almost certainly have a major influence on the bond market, which of course dictates the interest rate situation and the value of the US dollar.

In other words, I do not expect this to get simple for traders anytime soon. It is probably worth noting at this point that the 50% Fibonacci root level sits just below the 200-Day EMA, right at the psychologically important $1800 level. A breakdown below that level could spook a lot of gold bulls, so that could be the next major move if we do in fact get down there. While I am not necessarily calling for it, I do recognize it’s a very real threat.

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