Gold Price Forecast – Gold Markets Continue to Stabilize

Christopher Lewis
Published: May 24, 2023, 13:35 UTC

Gold markets have stabilized a bit over the last couple of days, and even managed to peak above the 50-Day EMA on Wednesday.

Gold, FX Empire

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Gold Price Predictions Video for 25.05.23

Gold Market Technical Analysis

Gold markets have rallied slightly during the trading session on Wednesday, to reach toward the 50-Day EMA. In fact, the market even broke above there, only to turn around and show signs of hesitation. Ultimately, I think this is a situation where we will continue to have a lot of noisy behavior, as traders try to figure out what they are going to do with wealth preservation and the gold market. Keep in mind that gold has been very noisy as of late, therefore I think we will continue to see a lot of volatility. It’s also worth noting that the uptrend line underneath should continue to offer support. Alternatively, the $1950 level probably offers support as well, so I think it all comes together quite nicely for a potential bounce.

Looking at this chart, a move above the 50-Day EMA could open up the possibility of a move to the $2000 level. After that, then we have the $2010 level, which is where we have a significant short-term uptrend line that has been broken and should now offer resistance. If we can break above there, then it’s likely that we could see a move toward the $2060 level. Gold should continue to attract a lot of attention, and now that we have had a short-term pullback, it has people looking for value. After all, the market had gotten a little ahead of itself, and of course traders around the world will continue to pay close attention to the central banks and what their monetary policy is. With that, expect noisy behavior but I still favor the upside.

If we break down below the $1950 level, then it’s possible that we could go look into the $1900 level underneath. The $1900 level also features the 200-Day EMA that could offer support, so that would be where your overall trend defining indicators set. Anything below there opens up the possibility of a rather steep decline, and in turn probably a very strong US dollar. Nonetheless, the only thing I think you can count on at this point is going to be a lot of noise.

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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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