Gold Price Forecast – Gold Markets Continue to Plunge
Gold Price Predictions Video for 03.10.23
Gold Market Technical Analysis
Gold markets fell yet again during the trading session on Monday, as we continue to see a lot of trouble with the US dollar and higher interest rates. This of course is very toxic for the gold market, as we continue to see every short-term rally sold into. Now that we are well below the $1900 level, I do believe that it is only a matter of time before we get down to the $1800 level, which is a major support level and of course a large, round, psychologically significant figure. In general, it looks like a market that every time we rally, there will be plenty of sellers that will jump into the market and push the price to the downside.
The size of the candlestick is somewhat impressive, showing signs of further downward momentum. The Friday session initially was a rally, but then turned around and fell apart. The Monday session was essentially a continuation of the overall downward pressure. The $1900 level above is a major resistance barrier, and it’s not until we break above there that the market looks likely to go much higher. Granted, we are oversold at that point, but I do think that ultimately, we are going much lower. There is really nothing out there that’s changing as far as the economic outlook, and of course traders will continue to punish the US for profligate spending on top of the fact that there are a lot of concerns when it comes to global outlook and at the same time the Federal Reserve continues to tighten monetary policy despite the fact that the US government cannot stop expanding its spending.
If we were to break down below the $1800 level, the market could go much lower, as it would be a breach of a major support region. I don’t necessarily see that happening easily, but it is something to keep an eye on in the future. All things being equal, this is a market that continues to offer plenty of selling pressure going forward, and therefore every time it rallies, I look at it as an opportunity to fade the next rally that shows signs of hesitation.
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