Gold Price Forecast – Gold Markets Continue to Consolidate After Recent Run Higher

Gold Price Predictions Video for 26.10.23

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Wednesday, as we continue to see a lot of back-and-forth behavior. All things being equal, this is a market that I think continues to look at the $2000 level above which of course is a large, round, psychologically significant figure, and an area where you would expect to see a lot of pressure. If we can break above the area on a daily close, that would obviously show a lot of bullish pressure.

Looking at all of this choppy volatility, it’s obvious that the market is trying to sort out whether or not it can continue the upward pressure, and we should probably keep an eye on interest rates and the US dollar as it can cause quite a bit of pressure on this market. If we were to break down below the bottom of the hammer from the trading session on Tuesday, then the market is likely to go down to the $1950 level. If we break above the shooting star from last Friday, then obviously that would be very bullish, and it could open up a move to the $2050 level, perhaps even higher than that.

Keep in mind that gold has a little bit of a safe haven bid in it at the moment, due to the geopolitical issues coming out of the Middle East, but ultimately, it’s likely that the market will have to continue to pay close attention to news coming out of that region, and of course the bond markets themselves. All things being equal, this is a scenario where market participants continue to see a lot of danger, so you should be very cautious with your position sizing, this is typical with gold, but especially so in this type of environment. The market is going to continue to see a lot of external forces, and therefore you have to look at this as a situation where the markets will continue to shake out the “weak hands” in the marketplace. At this point, it looks more like a “buy on the dip” sideways market, but if we get some type of good news coming out of the Middle East, you could see gold get hammered.

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