Gold Price Forecast – Gold Markets Get Hammered on Friday
Gold Price Predictions Video for 27.02.23
Gold Market Technical Analysis
Gold markets have seen a lot of negativity over the last couple of days, and the Friday session of course was no better. At this point, it looks like we are trying to get down to the 200-Day EMA, an area that I think a lot of people will be paying close attention to. With that being the case, it’s very likely that we could see a little bit of volatility in this area. Whether or not the gold market can find buyers remains to be seen, but it will obviously be influenced by not only interest rates, but also the US dollar in general. The US dollar of course has a negative correlation to the gold market over the longer term, and that should continue to be the case here.
The 50% Fibonacci level is an area that a lot of people will pay attention to as well, and it does sit just below that crucial 200-Day EMA. Because of this, I think it’s a situation where you continue to see a lot of volatility over the next couple of days, but we have to make some type of decision going forward. With that being the case, I think we probably have a situation where the volatility will probably get worse, not better but I think given enough time we will make a bigger move. Breaking down below the 50% Fibonacci level is of course a shot across the bow of gold bulls, but there is still a significant amount of noise in general.
If we break down below that area, then you’ve got the gap that sits just above the 61.8% Fibonacci level, closer to the $1750 level. That’s an area that I think also offers a lot of support, and if we were to break down below there, I think that the gold market could collapse. At that juncture, we could be looking at a drop all the way down to the $1660 level. While I don’t necessarily expect that, it is a potential outcome if we see enough negativity. In the meantime, I think it is more of a “fade the rally” market, but I also recognize that there’s a lot of noise just underneath.
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