Gold Price Forecast – Gold Markets Continue to See Buyers

Christopher Lewis
Published: Dec 21, 2023, 13:57 UTC

Gold markets rallied slightly during the trading session on Thursday as the market continues to see a lot of noisy behavior.

Gold bullion, FX Empire

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Gold Price Predictions Video for 22-12-2023

Gold Markets Technical Analysis

The gold market rallied a bit during the trading session on Thursday as we continued to pressure to the upside. All things being equal, I do believe that gold continues to go higher over the longer term, but at this point in time we also have to worry about the idea that the holidays will sap most if not all of the liquidity out of the market. With that being the case, the market is likely to continue to be a little lackluster in the short term, and next week could be very nonchalant. That being said, the market is also going to have to pay close attention to the $2050 level above, which is an area that has been resistant multiple times. I think we are squeezing toward that direction, but I also recognize that the market will more likely than not continue to see buyers on dips.

Underneath, the $2000 level is a “floor in the market” going forward, and therefore I think the market moving anywhere near there will attract a lot of attention. The 50-Day EMA is in that area as well, so that is yet another reason to think that technical analysis favors looking at that as a buying opportunity. Anytime we get there, I think there will be a lot of buyers willing to step into the market and take advantage of cheap gold. That being said, we could break above the $2050 level before that happens, which opens up a move to the $2075 region. That is the top of the bodies of the 2 highest candlesticks over the last month. Obviously, there is that nasty wick that shot higher during the day on December 4, but I think that is an anomaly that just shows that there was a serious lack of liquidity at the moment.

I think at this point if we can break above the $2075 level, then we just continue an overall uptrend, and I would not put too much faith in that wick as I think it has shown itself to be less than reliable to give us an idea of what’s going on in the markets.

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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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