Gold Price Forecast – Gold Markets Initially Tried to Rally During the Trading Session but Failed

Christopher Lewis
Published: May 26, 2023, 15:59 UTC

The gold market initially tried to rally during the trading session on Friday but has given up gains as we continue to see weakness and of course strength in the US dollar.

Gold, FX Empire

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Gold Price Predictions Video for 29.05.23

Gold Market Technical Analysis

Gold markets initially tried to rally a bit during the trading session on Friday but then turned around to show signs of hesitation as gold continues to get beaten up by higher rates in the bond markets and, of course, the strengthening US dollar. For a while, the negative correlation between the US dollar and gold started to go away, but at this point, it looks like it is coming back in full. With that being the case, the uptrend line underneath is going to continue to offer support, and therefore it’s likely that we would see plenty of interest in buying this market. After all, gold is typically used for wealth preservation, and that of course is something that a lot of people are looking toward.

That being said, interest rates are starting to spike again, and that causes issues for gold because it of course offers no interest as an investment. Having said that, as money is being parked into the bond market, it comes out of the gold market. It’ll be interesting to see if this uptrend line comes into the picture, and of course if we can stay above the 200-Day EMA underneath there. The $1900 level of course is an area where a lot of people pay close attention to as it has a lot of psychology attached to it, but if we turn around and take out the top of the candlestick from Friday, it would be a very bullish sign and we could go looking to the 50-Day EMA. Breaking above there could then open up the possibility to the $2000 level, which is a large, round, psychologically significant figure and therefore a bit of a magnet for prices in general.

One thing I think you can count on is going to be a lot of noisy behavior, but I don’t necessarily think that we are going to see anything crazy coming down the pike. In general, we will have to figure out what it is we are going over the next couple of days, but I do think that we are starting to enter an area that could offer a little bit of value.

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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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