Gold Price Forecast – Gold Markets Stall Just Below $2000

Christopher Lewis
Updated: Mar 24, 2023, 16:28 GMT+00:00

Gold markets have gone back and forth during the trading session on Friday as we continue to look at the $2000 level just above.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 27.03.23

Gold Market Technical Analysis

Gold markets have gone back and forth in general during the trading session on Friday as we continue to threaten the $2000 level. We have broken above there a couple of times over the last few days, so I think we are currently trying to chip away a major barrier of selling pressure. Not only will there be sellers there, but there will probably be options barriers as well. That being said, it is probably only a matter of time before we see that level get broken if this pressure continues.

Underneath, if we were to break down below the $1937 level, then we could see a significant pullback, perhaps down to the $1900 level. The $1900 level is a large, round, psychologically significant figure and also features the 50-Day EMA sitting just below it. It is worth noting that we ended up forming a hammer on the weekly chart and break down below the bottom of it would be a “hanging man pattern.” While I don’t necessarily think that is going to be the end of the gold bullish run, the reality is that a correction could very well be coming.

While the US dollar can run counter to the gold market, the reality is that both can go up at the same time so don’t necessarily use that negative correlation by itself. Furthermore, if we can get gold to break above the $2012 level on a daily close, then it’s likely that the market will take off to the upside and we can finally start moving towards a $2100 level. A lot of traders are out there trying to protect their wealth, so it would make a certain amount of sense that we would see that happen in this environment.

Keep in mind that the markets continue to look at this through the prism of “buying the dip, so even if we do get a significant selloff, signs of support will probably continue to attract a lot of people into the market, trying to take advantage of “cheap gold.” This last run has been rather drastic, so it does make a certain amount of sense that we need to take a short-term breather.

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.

Did you find this article useful?