Gold Price Forecast – Gold Stagnates Waiting for Data

Gold Price Predictions Video for 14.09.23

Gold Market Technical Analysis

The gold markets initially dipped a bit during the trading session on Wednesday, but still remain stuck between the 200-Day EMA underneath, and the 50-Day EMA upon. Keep in mind this market has a lot to think about, not the least of which will be the CPI numbers on Wednesday, but we also have to worry about the European Central Bank rate decision on Thursday. The Consumer Price Index numbers will give participants an idea as to what the Federal Reserve is going to see as the inflationary picture in the United States, and of course that has a major influence on interest rates. As interest rates climb, that typically works against gold and of course vice versa.

As far as the ECB is concerned, it is of course going to have an influence on the Euro, which is the “anti-dollar.” Because of this, it is very likely that we will see some type of reaction out of the gold market, because there will be a reaction with the EUR/USD pair. In other words, there is a significant “knock on effect” in this market.

All things being equal, the technical analysis does suggest that there should be plenty of support underneath, not only due to the 200-Day EMA, but also the $1900 level. If we were to break down below that level, then it could send the gold market much lower. In that scenario, I see gold dropping down to the $1800 region. On the other hand, if we turn around and take out the 50-Day EMA, then it’s very likely that gold could go looking toward the $2000 level before it is all said and done. I would expect a lot of noise in that area, as there will almost certainly be options traders up there waiting to press the market lower. If we can break above the $2000 level, then I think gold becomes more of a longer term uptrend. As you can see, we have been range bound since May of this year, and therefore we could finally see some type of trend play itself out in this market. Until then, expect choppy and sideways behavior in gold markets.

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