Gold Price Forecast – Gold Markets Look Stretched

Gold Price Predictions Video for 01.12.23

Gold Market Technical Analysis

Gold markets have dropped a bit during the trading session on Thursday in the early hours, but quite frankly it doesn’t look like we are ready to fall apart just yet. We are overextended, and that’s probably something that we need to pay close attention to as well. The area right around the $2050 level continues to be significant resistance, just as it had been multiple times in the past. This is a major resistance barrier, and at this point it’s probably worth noting that the Relative Strength Index indicator is now in the overbought condition, suggesting that perhaps a pullback is imminent.

That being said, it doesn’t necessarily mean that gold is going to suddenly be something that you should be shorting, just that if you are already long in this market, you may want to tighten your stop losses. Remember, markets don’t go straight up in the air forever, so it does make a certain amount of sense that we need to take a bit of a breather. Given enough time, I do think that we could break out to the upside, especially if the Federal Reserve starts to sound a bit more dovish, which is something that a lot of people were trying to front run.

In general, this is a market that I think continues to see a lot of volatility, and therefore you will have to pay close attention to the bond market in the United States, and of course speakers from central banks. I don’t think at this point in time it’s very easy to short this market, but I do think that the pullback could offer a nice buying opportunity, especially if we drop anywhere near the $2000 level.

While that would be $40 below where I see the market trading at the moment, it is still but a small blip on the radar considering that we launched this move from just above the $1800 level. Be cautious with your position size, but recognize that a short-term pullback should end up being buying opportunities in what is a very bullish market that simply needs to take some type of break from the relentless buying pressure.

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