Gold Price Forecast – Gold Markets Continue to Drop

Gold Price Predictions Video for 19.05.23

Gold Market Technical Analysis

Gold markets fell during the trading session on Thursday, breaking below the 50-Day EMA. By doing so, it does show a little bit of negativity, and it’s possible that the gold market could go looking to the $1950 level. This is an area that the futures market had gapped from to the upside and has not filled yet. While you may be trading futures or spot markets, this will have an influence regardless.

If you were to break down below the $1950 level, then it opens up the possibility of gold dropping down to the $1900 level. The $1900 level is backed up by the 200-Day EMA; therefore, it makes sense that we see that act as a bit of the floor. After all, the 200-Day EMA is normally followed closely by technical traders. Therefore, it’s a situation where you would see a lot of technical and psychological noise.

On the other side of the equation, if we were to turn around and take out the 50-Day EMA, the market would likely look toward the $2000 level. Anything above there then opens up a much bigger move, perhaps recapturing the overall bullish trend. That being said, the US dollar is starting to strengthen a bit, and one would have to assume that the market will continue to see a bit of profit taking in what had been a very big move to the outside.

On the other hand, there is a lot of wealth preservation demand out there, so I do think that any pullback in the market will eventually attract a lot of attention. However, if the market were to find the US dollar exploding to the upside, that could be a bit of an anchor around the neck for the gold market bulls. I would anticipate a lot of noisy behavior in the short term, but sooner or later value hunters will almost certainly come back into this market. With that in mind, wait for the market to tell you when it’s ready to turn around before you try to buy gold. Trying to “front run the turnaround” could be very expensive and cause quite a bit of damage to your account.

For a look at all of today’s economic events, check out our economic calendar.