Gold Price Forecast – Gold Markets Attempt to Stabilize Again

Gold Price Predictions Video for 02.10.23

Gold Market Technical Analysis

Gold markets have gone back and forth during the course of the trading session on Friday, as it looks like we are trying to stabilize after a massive drop. Because of this, we could see a little bit of a recovery, and the $1900 level above is going to be a short-term resistance barrier. If we can break above there, then the market could go looking to the 200-Day EMA, which is about $25 level above there. This would be a nice recovery, but it could very well end up being a selling opportunity, as we have seen such a significant breakdown.

If we were to break above that 200-Day EMA on a daily close, it would obviously mean something, perhaps signaling that the US dollar strength is over, and that gold could rally. However, I think it would take a huge amount of momentum to make that happen. Alternatively, if we were to break down below the bottom of the candlestick from the Thursday session, that opens up a continuation of the downtrend, perhaps sending gold down to the $1800 level.

It’s also worth noting that the market has broken down from a significant triangle, and therefore I think a lot of traders will be bailing out on this market. Pay close attention to the interest rate market, as higher interest rates work against the value of gold most of the time, due to the fact that the investor can make money for simply holding paper, instead of paying for storage on gold. Higher interest rates means that the “risk-free rate” is high enough that it’s easier to simply on bonds.

All things being equal, this is a market that will continue to be more of a “fade the rally” market, at least until something changes in the bond market or the Federal Reserve. Ultimately, this is a scenario where I think we are looking at a market that has a lot of momentum still building up, but we may have to go sideways in the short term as we digest those recent losses that we’ve seen all week.

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