Gold Price Forecast – Gold Markets Gap to Kick Off the Trading Session

Christopher Lewis
Updated: Mar 23, 2023, 14:07 UTC

Gold markets have gapped higher to kick off the trading session on Thursday, as we continue to see plenty of volatile behavior.

Gold, FX Empire

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Gold Price Predictions Video for 24.03.23

Gold Market Technical Analysis

Gold markets have gapped higher to kick off the trading session on Thursday, as it looks like we are going to continue to see plenty of volatility. That being said, it’s worth noting that we gave up quite a bit of the early gains, and it suggests that the market was a little overdone. Because of this, I think we will continue to look at the $2000 level above as a major resistance barrier.

In fact, when you look at the longer-term charts, the $2000 level has been very difficult to overcome, lease for any type of sustained move. It’s not to say that we cannot do that, but quite frankly right now it’s going to continue to be noisy as we determine whether or not we are going to be able to continue going to the upside, or if we see a resurgence in the US dollar, which does look a little oversold.

The candlestick for the trading session on Thursday certainly looks as if it is running into a bit of hesitation, and therefore it’s likely that we would see a little bit of a pullback. The $1950 level underneath could be a bit of support, as it is a round figure, but it’s also an area where we have seen a certain amount of support. If we were to break down below there, then the $1900 level could be targeted, and it’s probably worth noting that the 50-Day EMA is sitting just below there and rising. This is an indicator that a lot of people pay close attention to, so I would assume that it is probably only a matter of time before it would cause a little bit of technical support.

On the other hand, if we were to turn around and take out the shooting star from Monday, that could open up a huge move to the upside, allowing the market to really take off. All things being equal, that could be a potential new leg higher in gold, and I imagine that there would be a lot of FOMO trading at that point. At this point, dips have to be looked at as potential buying opportunity in the short term.

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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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