Gold Price Forecast – Gold Markets Continue to Show Consolidation
Gold Price Predictions Video for 02.06.23
Gold Market Technical Analysis
Gold markets initially fell a bit during the trading session on Thursday, but then turned around to show signs of life again as we continue to see gold consolidate in general. We are hanging around the 50-Day EMA, which is an indicator that a lot of people pay close attention to. By doing so, I think there will be a significant amount of noise in this area, and at this point I also pay close attention to the $2000 level, which of course is a large, round, psychologically significant figure that will attract a lot of attention as well. Over the longer term, I do believe the gold will break above there, as there is a huge demand for “wealth preservation.”
Underneath, the $1950 level offers support, as it is sitting just below the 50% Fibonacci level. Underneath there, then the market could open up the possibility of the 61.8% Fibonacci level, and then after that we have the 200-Day EMA, offering the support for overall trend. Ultimately, the market continues to see a lot of noisy behavior, but I do think ultimately we will chew through a lot of hesitation.
Pay close attention to the bond market, because if interest rates start to spike again, that obviously will work against gold, as people get paid to simply sit on paper instead of storing metal. However, it looks as if we continue to see a lot of concern out there, and of course Wall Street believing that the Federal Reserve is going to start loosening monetary policy, then it makes a lot of sense that we would see noise more than anything else. If we can break above the $2000 level, then gold is likely to go looking toward the $2050 level, and then possibly even as high as $2100, which has been a major resistance barrier more than once. Underneath, if we were to break that 200-Day EMA, it’s very likely the gold would continue to fall apart, drifting much lower, perhaps even completely reversing the overall trend. Regardless, keep your position size reasonable because we have a very volatile market out there.
For a look at all of today’s economic events, check out our economic calendar.