Gold Price Forecast – Gold Markets Drop

Christopher Lewis
Updated: Nov 20, 2023, 16:39 GMT+00:00

Gold markets initially tried to rally during the session on Monday but saw selling pressure pick up later in the day.

Gold bullion, FX Empire

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Gold Price Predictions Video for 21.11.23

Gold Market Technical Analysis

Gold markets initially tried to rally during the trading session on Monday, but gave back gains rather quickly, as the market looks as if it is going to drop toward the 50-Day EMA. The 50-Day EMA could be a significant amount of support based on technical analysis, and I think it’s probably only a matter of time before we see buyers jumping into the market to pick up “cheap gold.” That being said, the bond markets are all over the place these days, so keep an eye on the yield coming out of the 10 year note in America.

In general, this is a market that I think continues to be extraordinarily noisy, so you need to be cautious with your position sizing. The 50-Day EMA is not only going to offer support, but we also have to look at the previous uptrend line underneath, and then of course the 200-Day EMA sits below there offers support as well. Because of this, think it’s probably only a matter of time before the buyers return. However, we need to see some type of bounce before putting money to work, or we need to see the market turnaround to take out the $2000 level. The shooting star from the Friday session was the beginning of the first signs of overextension, and now it’s likely that we have a little bit of profit-taking. All things being equal, I do think that eventually we try to break above the $2000 level, and then open up the possibility of a move to the $2100 level.

I do think that things will be volatile, but that’s not a huge surprise considering that gold is very much like this most of the time. All things being equal, this is a situation where I think you will see a lot of choppiness, but I don’t have any interest in shorting this market because I do think that it is probably only a matter of time before traders start to look toward this market in order to protect wealth, and perhaps even as a way to play against the US dollar if it continues to lose its strength.

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

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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