Gold Price Forecast – Gold Stalls Ahead of CPI

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Wednesday as we continue to see a lot of volatility in general. Quite frankly, I think this is a market that will remain very noisy, as the gold market is so highly sensitive to inflationary pressures. As long as inflation is high, it’s very likely that we will continue to see a lot of downward pressure on gold over the longer term, as the Federal Reserve will almost certainly be raising rates. Furthermore, the US dollar will climb, which also works against the value of gold.

With that being the case, it’s very likely that we could drop back down to the 50-Day EMA, an area that I believe will continue to offer short-term support. After that, we have the 1680 level, which has offered a lot of buying and selling pressure in the past, but the more times we sliced through it, the less effective it ends up being. If we break down below that level, then it’s very possible that we drop all the way down to the $1625 level. After that, you’re looking at $1600, followed by $1500.

There has been a huge negative correlation between interest rates and gold for some time, and I think that’s going to continue to be the way this market plays out. With that being the case, I have no interest in getting too cute here, I simply want to look for selling opportunities, which is exactly what we may have after the CPI number if it’s hotter than anticipated. That being said, the market looks overbought to say the least.

Gold Price Predictions Video for 10.11.22

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