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Gold Price Forecast – Gold Markets Plunge Again

By:
Christopher Lewis

Gold markets fell again during the trading session on Monday, as we have broken significantly below the $2000 level.

Gold bullion, FX Empire

In this article:

Gold Price Predictions Video for 12.12.23

Gold Market Technical Analysis

Gold markets fell again during the course of the trading session on Monday, as we continue to see a lot of downward pressure. The 50-Day EMA underneath suggest that we could see a little bit of support, and quite frankly we have plunged quite radically since we had that “blow off top” a couple of weeks ago. With this being the case, if we break down below the 50-Day EMA, then it’s possible that we could drop down to the $1950 level.

I think part of what we are seeing here is the fact that traders are taking massive profits heading into the holidays. Furthermore, we have the Federal Reserve meeting this week, right along with the Swiss National Bank, Bank of England, and European Central Bank. In other words, we could see a lot of noisy behavior in the interest-rate sectors around the world this week, so a lot of traders probably won’t be bothered to hold on to something that is so sensitive to those markets.

That being said, we are still very much in an uptrend, but we are clearly pressuring some major support levels. If we can turn around and take out the $2000 level to the upside, then we could go back toward the $2050 level, but whether or not we get that happening between now and New Year’s remains to be seen, but I do think that sooner or later value hunters will probably come back into the picture. We need to see some type of supportive candlestick and then a bounce, but at this point in time it certainly looks pretty dire.

It would not surprise me at all if gold bugs waited until after the holidays to start buying, but I am keeping an eye on the reaction to gold after the Federal Reserve meeting specifically, which of course is this Wednesday and could turn things around quite drastically. The selloff has been out of control, and now to be interesting to see if it finally slows down. Keep in mind that markets do tend to overreact and incorrect, and I think we are getting rather close to the possibility of seeing that happen.

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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