Gold Price Forecast – Gold Markets Continue to Straddle the 200 Day EMA

Gold Market Technical Analysis

Gold markets have initially fallen during the trading session on Wednesday but then turn around and show signs of life. By bouncing we have ended up right at the 200 Day EMA, which of course attracts a lot of attention from a technical analysis standpoint, as the indicator is so widely followed by algorithms. If we can break above there, then it’s likely that the market will look at the $1874 level as a potential target as it is where the 50 Day EMA resides.

Looking at the chart, it’s obvious that the CPI numbers on Friday will probably be what unleashes some type of movement, as traders are worried about the Federal Reserve and interest rate movements in the United States. If rates drop, that should be good for gold and send it higher, just as if rates start to rally based upon massive inflation, that could be very bad for gold.

Pay attention to the US dollar as well, it can sometimes have a bit of a knock-on effect, but at this point, I think we are more likely than not going to continue to see a lot of choppiness until we get a decisive break of either the 50 Day EMA above or a break down below the $1835 level, which is the bottom of the overall consolidation. Between now and then, expect a lot of noise and a lot of Brownian motion as the market does not seem to know what it really wants to do. Position sizing will be crucial.

Gold Price Predictions Video 09.06.22

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