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Gold Price Forecast – Gold Drops Toward Support

By:
Christopher Lewis
Published: May 23, 2023, 13:35 GMT+00:00

Gold markets have fallen during the trading session on Tuesday but continue to find support near the $1950 level.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 24.05.23

Gold Market Technical Analysis

Gold markets have shown significant negative pressure during the trading session on Tuesday as we continue to see the market test the $1950 level, an area that, of course, will attract a certain amount of attention not only due to the psychological importance of this market, but also the fact that there is a bit of a trendline in that general vicinity. Keep in mind that gold has recently been used for wealth preservation, which of course is a good sign that we may see gold stabilized.

Looking at the precious metal sector in general, it’s probably worth noting that the silver market has been absolutely crushed, while gold has been quite a bit less negative. That being said, I think gold is probably the first place traders put money in anyways, due to the fact that silver is so volatile.

Just above, the 50-Day EMA is sitting just above the candlesticks from the last couple of days, and therefore if we were to take that out, it’s likely that the market could go looking to reach the psychologically crucial $2000 level. That being said, keep in mind the $2000 has been sliced through multiple times, so it certainly makes sense that it may not be as impressive as it once was.

Underneath, we have the uptrend line and if we were to break down below the $1940 level, then it’s possible that we could drop down to the 200-Day EMA which is hanging around just below the $1900 level. The $1900 level courses a large, round, psychologically significant figure and an area where we have seen quite a bit of noise previously. With that, even if we do break out from here, I think it’s probably somewhat limited to the downside, especially as there are a lot of concerns around the world as to whether or not we are going to have any growth. This does make a certain amount of sense that it would attract traders going into the gold market, therefore I think we’ve got a situation where we will eventually see the market turned back around. Yes, the US dollar can happen an effect on gold, but that is not always the case, so don’t rely on that single correlation.

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

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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