Gold Price Forecast – Gold Markets Continue to Consolidate

Gold Price Predictions Video for 21.12.23

Gold Market Technical Analysis

The gold markets pulled back slightly during the trading session on Wednesday, as the $2050 level has offered a bit of resistance, and therefore I think it will be interesting to see if we can break above there. That being said, the market is going to continue to go back and forth between the $2000 level underneath, and the $2050 level above. The 50-Day EMA sits below the $2000 level, which would be a hard “floor in the market” currently.

All things being equal, the market is likely to continue to see upward pressure, and I do think that the $2050 level continues to be resistance, but ultimately, I think we have a situation where the liquidity starts to pull out of the market, therefore I think you get a situation where we are more likely than not going to stay in this overall range. That being said, the market is likely to continue to see a lot of noisy behavior, but I do think that overall, the buyers are going to be driving the market.

At this point, I am a buyer on dips, and therefore I will look for certain types of short-term drops that I can take advantage of. The $2000 level underneath should be a major support level; therefore, I think we need to pay close attention to it. The 50-Day EMA racing there also brings a lot of people into the market due to algorithms, and therefore I think it’s a situation where the market will continue to see plenty of support.

With the market focusing on interest rates, I do think it makes quite a bit of sense that we would see the gold markets continue to move up and down based on that, especially considering that gold tends to do fairly well when interest rates drop, something that we should see during the course of 2024. With that being the case, I think you get a situation where eventually, we break toward those highs that we made a while ago on that huge wipeout candlestick. In general, this is a scenario where I think you cannot be a seller, at least not until we break down below the 50-Day EMA.

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