Gold Price Forecast – Gold Markets Get Slammed on Thursday

Christopher Lewis
Published: Jan 26, 2023, 16:36 UTC

Gold markets have gotten hammered on Thursday, as we continue to test the top of the previous channel. The question is whether or not this line will hold?

Gold, FX Empire

In this article:

Gold Price Predictions Video for 27.01.23

Gold Market Technical Analysis

Gold markets have gotten hammered during the trading session on Thursday to test the top of the previous channel that we had been in, causing a bit of market memory to come into play. With that in mind, I think it’s probably only a matter of time before we see some type of buying pressure come back into the picture, but if we do break down below here, I think it’s actually going to be very bullish for gold because quite frankly there are so many people off there, myself included, that are trying to find some type of value in what’s an obvious bullish trend.

I think gold eventually goes to the $2000 level, and therefore think there are plenty of buyers out there given enough time, but a pull back to the $1900 level would at least attract some attention. Furthermore, we could drop down to the bottom of the channel, and even the 50-Day EMA which is racing towards that area anyway. The US dollar strengthening during the day did work against the value of gold, but at this point I think we’ve got a situation where there is still enough desire to protect wealth out there that gold should continue to be at least a viable asset.

It’s worth noting that every time we have fallen over the last several days, buyers have come back in on this trendline, and as a record this it looks rather dire. However, if we turn around and rally late in the session, it would just be business as usual. It’s almost impossible to short gold at this point, and I suspect probably what we had seen more than anything else is a lot of people trying to take profit.

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.

Did you find this article useful?