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Gold Price Forecast – Gold Markets Pull Back on Friday

By:
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.

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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