Gold Price Forecast – Gold Markets Continue to Threaten $2000 Area

Christopher Lewis
Published: Mar 31, 2023, 15:55 UTC

The gold market has initially tried to rally a bit during the trading session on Friday, but it looks like the $2000 level continues to offer plenty of resistance.

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Gold Price Predictions Video for 03.04.23

Gold Market Technical Analysis

Gold markets have rallied a bit early during the trading session on Friday, but it looks as if there is still a significant amount of resistance above the $2000 level. The $2000 level is a large, round, psychologically significant figure, and of course an area where we’ve seen a lot of selling pressure previously. Nonetheless, when you look at the futures market, there is still a gap that kicked off at the $1950 level, so I would anticipate seeing a certain amount of support at that level.

Underneath there, we have the 50-Day EMA, which sits just above the $1900 level. The $1900 level is a large, round, psychologically significant figure, and an area where we’ve seen some noise in the past. After that, then we go looking to the 200-Day EMA, closer to the $1833 level and rising. Ultimately, this is a market that is very bullish, and you can even make a little bit of an argument for some type of symmetrical triangle that’s going on.

Looking at the larger insurance, there is a significant amount of noise between here and $2100, so you’ve got a situation where you could have a lot of difficulty going higher, but it’s probably worth noting that the market continues to find reasons to go higher, as the tenacity of the gold bulls has to be kept in mind. Even if we do pull back from here, as things stand right now it looks like the gold market would be a “buy on the dip” situation, and therefore you would have to look at it as value. In fact, that’s something that I would like to see, because it is difficult to buy a market that is pressing up against a major resistance barrier. In other words, I would like a little bit of running room if I can get that. However, if we do just breakout to the upside, you cannot argue with that, as the market has been so bullish as of late.

As long as traders feel the need to protect their wealth with gold, this will continue to be a bullish market. Furthermore, several central banks around the world continue to buy gold, so that puts a little bit of a floor in the market as well.

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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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