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Gold Price Forecast – Gold Has a Wild Ride

By:
Christopher Lewis
Published: Apr 19, 2024, 12:43 GMT+00:00

The gold market was all over the place as the attack in Iran hit the newswires. However, we have since seen the market completely flatline.

In this article:

Gold Markets Technical Analysis

Gold shot higher when words got out that the Israelis had attacked Iran and shot above the $2,400 level in the spot market overnight. However, we have seen a complete reversal and subsequent denial of further upward gains as word has reached the market that it appears Israel really didn’t target anything of extreme importance and damage is relatively limited. This is the latest show of force in tit for tat arguing essentially with missiles.

At this point in time, it looks like the markets are starting to accept the fact that this is not a major escalation, at least not at the moment. Gold gave back its gains rather quickly, and as I watched the market overnight, I was astonished how quickly gold was moving to the upside. However, since then we’ve seen cooler heads prevail, and we have gotten to turn the market around and fall right back into the previous consolidation area.

With that being the case, I think you’ve got a situation where we continue to grind sideways. Gold ran so far in such a short amount of time; it needs sideways action to work off some of the froth. Or better yet, it needs to see a pullback towards the $2,200 level. At this point in time, I still think it’s a bit difficult to chase gold. But if you were quick enough overnight, you got a quick scalping opportunity.

Heading into the weekend, it’s difficult to imagine how traders will think about this because they may want to hold gold due to the potential trouble over the weekend, but at the same time, what happens if there’s good news? Gold will drop 100, maybe 200 dollars. So, at this point in time, it has to be thought of as a longer-term bullish yet short-term neutral market, and that’s exactly how I will be trading it.

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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