Gold Price Forecast – Gold Markets Plunged Into the Gap

Gold Market Technical Analysis

Gold markets have fallen during the trading session to dip below the $1750 level and fill the gap underneath that level. We have bounced a bit, so it does look like we are trying to hang on to the $1750 level. That’s an area that will continue to attract a certain amount of attention due to the gap, and the fact that it previously had been so resistant. Market memory should come into play here, so bouncing from this level would not be a huge surprise.

Looking at the chart, market participants continue to see a bit of value in gold, as we are trying to form a floor. However, I don’t think it’s going to be an easy trade and I do suspect that it is going to be very noisy along the way. Because of this, it’s very likely that the 50 Day EMA above will offer a little bit of a ceiling.

If we break down below the lows of the trading session on Monday, that opens up the possibility of a move down to the $1725 level, maybe even the $1700 level given enough time. Nonetheless, this is a market that I think is trying to fight back based on the recent action. Bond yields will obviously have a major influence on where we go next, so pay attention to what’s going on in the bond market.

If they’ll start to fall, that should help gold going forward. As there is a rush into safety assets, this could be a bit of a “self-fulfilling prophecy.” Expect a lot of choppy behavior, but I do think that we will get a bounce.

Gold Price Predictions Video for 23.08.22

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