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Gold Price Forecast – Gold Hovering at the 50-Day EMA

By:
Christopher Lewis
Published: Sep 18, 2023, 12:58 GMT+00:00

Gold markets have tried to rally a little bit early on Monday, but it looks like the 50-Day EMA is going to cause a bit of resistance.

Gold bullion on US Dollar bills, FX Empire

In this article:

Gold Price Predictions Video for 19.09.23

Gold Market Technical Analysis

Gold markets have rallied slightly to kick off the week on Monday, but at this point in time it looks like the 50-Day EMA is going to continue to cause a little bit of resistance. Furthermore, we also have to pay attention to the fact that the Wednesday session features the FOMC interest-rate decision, and perhaps more importantly in this particular environment, the press conference. After all, a lot of traders out there believe that the Federal Reserve may be done raising rates and may even begin to start cutting rates early next year. That being said, it’ll be interesting to see how this plays out, because gold does tend to have a negative correlation to the interest rate situation.

If we pull back from here, the 200-Day EMA sits right at the bottom of the Thursday candlestick, and it offers a significant amount of support, and then of course we have the $1900 level. In general, this is a situation where we will eventually get a bit of a pullback I suspect, and that could be thought of as value. As long as we stay above the $1900 level, gold is probably in decent shape. On the other hand, if we can turn around and take out the 50-Day EMA, it’s possible that gold will eventually start to take off, perhaps reaching toward the $2000 level over the longer term, which of course is a large, round, psychologically significant figure, and therefore probably has a lot of options barriers there as well.

As long as we are between the 2 major moving averages, it suggests that we have a lot of back-and-forth just waiting to happen, so therefore I think you have to be prepared for volatility. Therefore, keep your position size reasonable, but I think in this type of market environment that’s probably the most prudent thing you can do anyway. That being said, I am much more comfortable buying on dips than anything else, but if we were to break down below the $1900 level, then the market goes looking toward $1800 pretty quickly.

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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