Gold Price Forecast – Gold Markets Get Slammed

Christopher Lewis
Updated: Feb 3, 2023, 20:23 UTC

Gold markets have fallen rather drastically during the trading session on Friday after we have seen the jobs ever come out much hotter than anticipated.

Gold, FX Empire

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Gold Price Predictions Video for 06.02.23

Gold Market Technical Analysis

Gold markets fell rather hard during the trading session on Friday in what looks very much like a complete trend reversal for the short term. You typically don’t see to red candlesticks like this in a row without some type of follow-through. At this point, I think that short-term rallies will be selling opportunities at the first signs of exhaustion. It’s worth noting that we broke down below the $1900 level, and that’s obviously an area that has a certain amount of psychology attached to it as it is a large, round, psychologically big figure.

It’s also worth noting that the 50-Day EMA is sitting right around the $1857 level, and if we can break down below there is likely that we could send this market down to the 200-Day EMA near the $1800 level. Gold is going to move in an opposite direction of the US dollar, so all of that is worth paying close attention to. While I don’t necessarily think we can’t turn around and rally significantly, but I need to see some type of supportive candlestick to make that happen.

In general, it’s likely that we see a lot of volatility and therefore it’s more likely than not going to be a market that you will need to be very cautious with, especially with your position size as gold tends to be very volatile to say the least. Nonetheless, I think in the short term we probably have more negativity ahead and therefore caution will be the better part of valor. It certainly looks like something just broke, so the next couple of days will be very important.

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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