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Gold Price Forecast – Gold Markets Continue to Rally

By:
Christopher Lewis

Gold markets rallied significantly during the early hours on Monday, as we continue to see buyers push the gold market higher.

Gold bullion, FX Empire

In this article:

Gold Price Predictions Video for 28.11.23

Gold Market Technical Analysis

Gold markets have rallied significantly during the course of the trading session on Monday, as it looks like we are trying to threaten the recent highs. If we can break above the recent peak in pricing, then the market could go on to threaten the $2100 level above. If we can break above there, then the market is likely to continue to go much higher.

Underneath, the $2000 level will continue to attract a certain amount of attention, as it is a large, round, psychologically significant figure. If we break down below there, and we have a couple of times, market is likely to find plenty of support near the 50-Day EMA. All things being equal, I do think that gold looks very strong, as we had recently pulled back to the 50-Day EMA and the 38.2% Fibonacci level, both indicators that a lot of people will pay attention to.

Pay close attention to the interest rate situation in the United States, because quite frankly as the rates fall, that should continue to help the gold market. On the other hand, if we do see interest rates rise again, that could work against the value of gold. When I look at this chart, it would not take a lot of imagination to see some type of pullback come back into the picture. In general, this is a market that I think continues to try to find value, so those pullbacks will be attractive.

You can also keep an eye on the US dollar, because it has an inverse correlation most of the time, but not always against the gold market. Gold is also being used to preserve wealth in a very uncertain financial situation at the moment, so therefore I see plenty of reasons for it to be attractive. However, this does not mean that you need to chase the trade and start buying all the way up here, at least not until it shows that it can break through the significant resistance barrier that we are now facing. In general, I believe that in this market, it’s more of a “buy on the dips” type of scenario going forward.

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

About the Author

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.

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