Gold Price Forecast – Gold Markets Balance for the Wednesday Session

Gold Market Technical Analysis

Gold markets have bounced a bit during the day on Wednesday, as the oversold condition is trying to rectify itself. Furthermore, the US dollar is overbought, so it all ties in together quite nicely. I do believe at this point we still have a significant amount of resistance above, especially near the $1680 level, an area that has been important multiple times. I am looking for signs of exhaustion that I can start shorting sometime soon, due to the fact that the markets broke through that area, which is significant support going back quite a while.

With this in mind, pay close attention to the US dollar and the interest rate markets, because they both have a huge negative correlation to gold, especially right now. It’s worth noting that the market could very well drop down to the $1500 level by the time it’s all said and done, so my preferred method would be to fade little bits and pieces along the way, building up a bigger position.

The next major structural support level that I see is closer to the $1200 level, which does suggest that we could see a rather big move. If we do, it’s likely that we have a situation where we have real chaos in the markets, and a huge run to the US dollar for safety.

The alternate scenario is something happens, and we break back above the $1700 level. At that point I would start to explore the idea of going long but I would also have to have fundamental reasons to think that the position made sense.

Gold Price Predictions Video for 29.09.22

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