Gold Price Forecast – Gold Continues to Struggle With the 50-Day EMA

Gold Price Predictions Video for 01.06.23

Gold Market Technical Analysis

Gold markets have been somewhat indecisive during the trading session on Wednesday, as we are sitting just below the crucial 50-Day EMA. The 50-Day EMA is quite often followed by traders to figure out where the market is going and of course whether or not the US dollar will have its influence on gold going forward. After all, the correlation goes back and forth but at this point in time it looks like the market is paying close attention to the $2000 level. The $2000 level is a large, round, psychologically significant figure and of course makes for good headlines.

The $1950 level is an area of significant support, and it’s also probably worth noting that we are hanging around the 50% Fibonacci level on pullbacks, and it certainly looks as if buyers are stepping in to pick up gold in that area. As we are between the 50-Day EMA and the 200-Day EMA indicators, it’s very likely that we will continue to see a lot of noise, and therefore I think it’s probably a scenario where we will continue to see a bit of volatility, but it does make a certain amount of sense that we had to pull back in order to find enough value to go back toward the highs.

After all, the market has been very noisy in general, and of course had been a little overstretched on the way up here. Ultimately, I think we have a situation where value hunters are starting to step in and take advantage of cheap gold, but if we were to break down below the 61.8% Fibonacci level, then it would send this market much lower, perhaps testing the 200-Day EMA. The 200-Day EMA is a longer-term trend indicator, and a lot of people will pay close attention to that.

If the market were to break to the upside, and I think it will eventually, clearing the $2000 level opens up the possibility of a move to the $2050 level. The $2050 level is my target eventually, but it does not look as if it will be as explosive to the upside as it once was.

For a look at all of today’s economic events, check out our economic calendar.