Gold Price Forecast – Gold Markets Rally Into the Weekend
Gold Price Predictions Video for 20.03.23
Gold Market Technical Analysis
Gold markets have rallied significantly during the trading session on Friday, and therefore it looks like we are heading into the weekend with a lot of fear. We are testing the previous highs, so that does suggest that perhaps we are trying to reach toward the $2000 level, but we had gotten a little bit overstretched, so I do think that it is probably due for some type of short-term pullback.
If we do pullback from here, the $1920 level will more likely than not be an area where we could see a little bit of support. Underneath there, then we have the $1900 level, which is a large, round, psychologically significant figure, and an area where we previously had seen previous resistance that should have a certain amount of “market memory.” That being said, the market continues to be moving more or less on a motion, and it seems that on the Friday session, we are seeing a lot of fear out there. The fact that people are willing to hang on to gold into the weekend does suggest that it is going to be very strong.
Having said all of that, we also have the Federal Reserve interest rate decision next week, and that of course will come into play as to where we go next with the US dollar, risk appetite in general, and then by extension gold. That being said, this is a situation where we will continue to see a lot of back and forth, and at this point I think a lot of what you are seeing in the gold market reflects the fact that there is so much uncertainty.
If we were to break down below the $1900 level, then we could have a run toward $1850, but I think that’s very unlikely at this point. It’s also worth noting that the 200-Day EMA is all the way down at the $1817 level, but with all things being equal, gold will continue to be strong against most other currencies as well. Of particular interest might be buying gold against commodity currencies as they are certainly going to be vulnerable at this point.
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