Gold Price Forecast – Gold Markets Continue to Squeeze in Wedge

Gold Price Predictions Video for 09.12.22

Gold Market Technical Analysis

Gold markets have shown a little bit of strength during the trading session on Thursday, as it looks like we are trying to overcome the $1800 level. At this point, the market is more likely than not going to continue to dance along this rising wedge, which could offer a little bit of trouble. At this point, the market is testing a previous resistance barrier that I have circled in purple, so you can see there’s a lot working against the market at the moment.

However, interest rates continue to fall in America and that could continue to push this market higher. If we can break above the $1825 level, then it’s possible that we could go to the $1875 level. All things being equal, the 200-Day EMA underneath at the $1768 level could be a major support level. If we break down below that, then I think a lot of things change, because not only did we are down below the 200-Day EMA, but a major gap that had formed previously. Breaking that level that would obviously be very negative.

Gold will continue to be very choppy, and a lot of traders will be paying close attention to what’s going on next week when the Federal Reserve has its meeting, and perhaps more important the press conference after the expected 50 basis point rate hike. With all that being said, I would anticipate a lot of noise behavior, but you should probably keep your position size relatively reasonable in the meantime. It certainly looks as if we are trying to break out to the upside, but we have a lot of work to do before that happens.

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