Gold Price Forecast – Gold Markets Continue to Look For Momentum

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Published: Jan 29, 2024, 13:22 GMT+00:00

Gold markets initially did rally a bit during the trading session on Monday, but it still looks as if it is a market that is a bit sluggish, perhaps waiting for the FOMC meeting on Wednesday to be done, so people can put larger positions on.

Gold Price Predictions Video for 30-01-2024

Gold Markets Technical Analysis

Gold was rather volatile early during the trading session on Monday, as we continued to look for some type of bigger move. It’s worth noting that the market is using the 50-day EMA underneath, offering massive support, and that short-term pullbacks offer buying opportunities from what I can see, especially with the 2,000 level underneath offering a significant barrier that I believe is more or less a barrier zone of support down to the $1,980 level.

In general, this is a situation where you probably continue to see a lot of value hunting, but we could just take off and if we do, 2040 will be the next target, after that 2060, followed by 2075. Anything above the 2075 dollar level really gets the market cooking and at that point in time it becomes a buy and hold scenario. On the other hand, a breakdown below the $1,980 level for me would be a rather significant turn of events and a change in attitude.

Keep in mind that the central bank meeting, the Federal Reserve meeting on Wednesday, is going to probably be a major event. Not so much the decision, although it could be if they surprise markets, but I will be focused on the press conference. Where are the Americans going with monetary policy? How quickly are they getting there? That type of thing. The looser monetary policy statement, the more bullish this will be for gold, and of course, vice versa.

Pay attention to those interest rates in America because if they drop, that helps gold as well. So, we’ll have to wait and see how this plays out, but I certainly have no interest in selling it, at least not as long as we are above that crucial $1,980 level. All that being said, position sizing will be crucial, but for the longer term, I believe the gold will probably continue to be a very important asset to own due to the geopolitical concerns as well as everything mentioned previously.

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

About the Author

Christopher Lewisauthor

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.