Gold Price Forecast – Gold Markets Continue to Pressure the Upside
Gold Price Predictions Video for 12.12.22
Gold Market Technical Analysis
Gold markets have rallied a bit during the trading session on Friday, testing highs yet again but could not build up enough momentum to break out. By failing to do so, it suggests that the market is probably going to continue to see a lot of noisy behavior, and a lot of hesitation. Keep in mind that most traders don’t want to be overly exposed heading into the weekend anyway.
Looking at this chart, you can also keep in mind that Wednesday is the Federal Reserve meeting, and a lot of people will be paying attention to that statement. By the end of the day Wednesday, we should have a general idea as to where they are going heading into next year. We also have the ECB meeting on Thursday, so that could have an influence as well. Ultimately, central banks around the world should remain fairly tight, but if the Federal Reserve remains extraordinarily aggressive, that could come into the mix.
One thing that could be providing a little bit of a boost for gold is the fact that we are more likely than not heading into recession in America, so that means that some people will be looking at gold as a way to preserve wealth. After all, it’s not just interest rates that move the market, it’s also a fear of losing your wealth. Gold can be used as safety, but it can also be greatly crushed by interest markets if we see a lot of rate strength. Furthermore, the US dollar should be watched as well, although they both can rise in a recessionary environment.
For a look at all of today’s economic events, check out our economic calendar.