Gold Price Forecast – Gold Markets Plunge

Gold Market Technical Analysis

Gold has plunged during the trading session on Friday as we continue to see the Federal Reserve tight monetary policy. The US dollar has been like a wrecking ball for a lot of different things, and of course gold is no different. It’s worth noting that gold has recently broken through a major support level, so it’s not a huge surprise to see that we had seen a little bit of follow-through. Most of the week we’ve been about going back and forth and deciding whether or not we are going to continue to see a lot of downward momentum.

Rallies at this point in time should be selling opportunities and I will continue to look at them as such. The $1700 level will more likely than not be the “ceiling” in the market, and I think it will take a lot of effort to break above there. If we did break above there, then it could change a lot of things but right now I just don’t see how that happens. In other words, I think we have plenty of opportunities going forward. The gold markets have finally made a bigger decision, so therefore the overall momentum should continue to be obvious.

Whether or not we can hold $1500 will be the next serious question, although I think we get the occasional rally, it more likely than not will offer an opportunity to start shorting again. The first sign of exhaustion, I’m not hesitating to get involved. The US Dollar Index has a major negative correlation, and of course has been on an absolute tear to the upside. At this point, a lot of pain has been felled in this market and I suspect that people were bailing.

Gold Price Predictions Video for 26.09.22

For a look at all of today’s economic events, check out our economic calendar.