Gold Price Forecast – Gold Markets Plunge During Tuesday’s Session
Gold Price Predictions Video for 08.11.23
Gold Market Technical Analysis
Gold markets plunged during the trading session on Tuesday, as we have seen interest rates in America spike again. This of course works against gold, but at the same time, gold can rally if it is more of a geopolitical concern. As things have calmed down a bit in Gaza, or perhaps best put, they haven’t started drawing more countries into the mix, gold is starting to lose some of that appeal that it enjoyed a couple of weeks ago.
Furthermore, traders may have gotten far ahead of themselves thinking that the Federal Reserve is going to come out with a looser monetary policy, and therefore they may have to rethink this entire situation. Do not get me wrong, I do believe the gold has a certain amount of appeal at the moment, but we had gotten too far ahead of ourselves and the fact that we ran out of momentum near the $2000 level should not have been much of a surprise.
Underneath, I see the 50-Day EMA near the $1950 level as a likely support level, and of course an area where we had seen some action previously. I would be expecting the market to find a little bit of interest in that area, and if we saw some type of bounce, that might be a nice buying opportunity. If we break down below there, then the market is almost certainly going to go toward the 200-Day EMA underneath there, possibly even the $1900 level.
A strengthening US dollar can work against gold as well, but also keep in mind that both can go up at the same time as well, depending on the circumstances. With this being said, I think you continue to see a lot of erratic trading, and therefore you need to keep your position size reasonable. Furthermore, you need to keep your timeline somewhat reasonable, meaning that if you get a couple of days’ worth of profits, it’s probably time to take them. This is not a market for swing traders at the moment. However, once we get a little bit of clarity on this pullback, we may be able to see a $50 move appear.
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