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Gold Price Forecast – Gold Markets Continue to Consolidate

By:
Christopher Lewis
Published: Jun 8, 2023, 14:33 GMT+00:00

Gold markets have rallied rather significantly during the trading session on Thursday, as we continue to consolidate in a tight range.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 09.06.23

Gold Market Technical Analysis

Gold markets have rallied during the trading session again on Thursday, as we continue to trade in a very tight and well defined range. Currently, the 50-Day EMA sits just above, and is causing a bit of a headache. Ultimately, I do think that we have to make a bigger move, but right now it does not look like a market that’s ready to get moving.

With that being said, I think that short-term range-bound traders will probably continue to do well in this market, just due to the fact that there’s no real follow-through. If we do break to the upside, that is possible that we could make a move toward the $2000 level, which obviously will capture a lot of of attention. If we were to break above the $2000 level then is likely the gold will go looking to the $2050 level. That being said, I think there are enough concerns out there about central banks right now to keep this market somewhat subdued, so therefore I anticipate more sideways action more than anything else.

If we were to break down below the $1950 level, then it’s possible the gold could start to fall toward the 61.8% Fibonacci level, which is near the $1920 level. Anything below there opens up the possibility of a move down to the 200-Day EMA, but I don’t think that’s going to happen right away. If that were to happen, it would almost certainly have something to do with a ton of US dollar strength, something that I don’t think we are going to see in the short term, simply due to the fact that central banks in general are very hawkish at the moment, and it’s not just the Federal Reserve. With that being said, I think we continue to see a lot of volatility but considering that the trend had been so strong one would have to assume that there will be a certain amount of support on any dip. Looking at the longer-term charts though, you can see the $2100 has formed a bit of a triple top.

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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