Gold Price Forecast – Gold Markets Pull Back on Friday

Christopher Lewis
Published: Jun 2, 2023, 14:41 GMT+00:00

Gold markets have broken down a bit during the trading session on Friday, as we continue to see a lot of noisy behavior.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 05.06.23

Gold Market Technical Analysis

Gold has initially tried to break above the $2000 level in the futures market, only to turn around and show signs of negativity. Ultimately, this is a situation where we are hanging around in the overall 50-Day EMA region, as we continue the consolidation that we have seen. The $1950 level is an area where there seems to be a bit of support, and as the market continues to go sideways in general, I think this shows just how uncertain a lot of the situation is when it comes to the gold market and of course the overall global risk appetite.

If we were to break above the $2000 level quite cleanly, then we could make a move toward the $2050 level, where we have a significant amount of resistance. The $2050 level is an area that I think has a certain amount of resistance built into it, so I don’t know that we can break above there. However, if we were to break above there, then the market could go racing toward the $2100 level. Ultimately, this is a market that continues to see a lot of noise more than anything else, so having said that I think you have to keep in mind that gold is used as wealth preservation more than anything else at the moment.

If we were to break down below the $1950 level, then we could go looking to the 200-Day EMA, and the $1900 level of course offers support as well. With this being the case, I do think that there will be buyers underneath trying to take advantage of this, but I don’t necessarily think that we are going to get there anytime soon. I think more likely than not, we continue to trade in a bit of a range as we try to figure out what we are doing longer-term. There is so much uncertainty out there right now that I would not be a huge player in this market at this point in time. Position sizing will also end up being a little smaller than usual for me as well.

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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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