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Gold Price Forecast – Gold Continues to Test The 50-day EMA

By:
Christopher Lewis
Published: Jan 17, 2024, 13:42 GMT+00:00

The gold market has fallen initially during the trading session on Wednesday, but it looks as if the 50-Day EMA is going to continue to offer support, and therefore it’s worth paying close attention to not only that, but the uptrend line sitting just below there.

Gold bullion, FX Empire

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Gold Price Predictions Video for 18-01-2024

Gold Markets Technical Analysis

You can see that we initially fell early during the trading session here on Wednesday, testing the 50-day EMA and the uptrend line, turning around to show signs of life. If we can break above the top of the candlestick for the session, then I think we have gold going toward the $2,050 level. This is an area that has been important on short-term charts, but quite frankly, longer-term traders will look right past it as we see so much in the way of follow-through in both directions every time we approach it.

It’s most certainly worth noting that gold is going to be very sensitive to the interest rate market in America more than anything else probably, but there are also geopolitical concerns out there that will continue to be a big driver of the price of gold as well. If we can break above the 2050 level, then we could go looking to the 2075 level.

The 2075 level is an area where we will continue to see previous resistance come into play. Breaking that then opens up the possibility of a more buy and hold market. If we were to break down below the 50-day EMA, then it’s possible that the $2,000 level underneath gets tested, but I think that is going to end up being a major support level as long as we stay above there and I anticipate that gold has at least some positivity to it.

You could make an argument that perhaps we are going to continue to bounce around between the 2000 level and the 2075 level but at the moment it certainly looks as if the buyers are becoming more and more aggressive with each dip. So only time will tell, but it certainly looks as if the buyers still have the upper hand. It is especially telling that the 50-day EMA has been so reliable over the last several months as well. Even if that were broken to the downside, it doesn’t necessarily mean anything other than we can find even more value.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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