Gold Price Forecast – Gold Markets Continue to Grind Higher
Gold Price Predictions Video for 20.09.23
Gold Market Technical Analysis
Gold markets have rallied a bit during the trading session on Tuesday to clear the 50-Day EMA. Whether or not we can hang on to this remains to be seen though, as we do have the FOMC meeting on Wednesday which will obviously have a major influence on not only gold, but the US dollar and interest rates in general. While nobody is anticipating an interest rate hike, the reality is that the real question is going to be whether or not the Federal Reserve will remain tight for longer, or if they will start to show signs of hesitation.
Ultimately, it does look like the gold market recently formed a massive double bottom near the 200-Day EMA, so technical traders are certainly excited. Near the $1975 level, there should be a bit of resistance, but if we can clear that area, then the next target is going to be $2000. The $2000 level of course is a large, round, psychologically significant figure, and therefore people are going to be paying close attention to it. The area is an area that one would have to assume that the options market will also have a lot of barriers there, so that will have an influence as well.
If we turn around and break down below the 50-Day EMA, then is possible that we may have to test the 200-Day EMA, which is closer to the $1925 level and rising. If we were to break down below there, then the $1900 level comes into focus, which I look at as a major support level. Anything below that level could spell a lot of trouble for gold, but right now it certainly looks as if the upward momentum is still with it. Because of this, I think you got a situation where the market is likely to continue to see back-and-forth behavior but with more of an upward twist. Expect a lot of volatility during the Wednesday session, but it looks as if the market has already decided that it at least wants to get to higher levels over the next several weeks. With that in mind, it’s difficult to short gold unless the FOMC shocks the market.
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