Gold Price Forecast – Gold Markets Rally on Friday

Christopher Lewis
Published: Nov 3, 2023, 15:08 UTC

Gold markets rallied on Friday, as we continue to bounce around the $2000 level. At this point, it looks like we are just simply trying to consolidate and digest gains.

Gold bullion, FX Empire

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Gold Price Predictions Video for 06.11.23

Gold Market Technical Analysis

Gold markets have rallied significantly during the trading session on Friday, as we continue to see a lot of noisy behavior. The $2000 level of course is a bit of a magnet for price, and therefore I think you’ve got a situation where we are looking at the market through the prism of just trying to work off some of the excess froth that we have seen. It’s worth noting that this area has been resistance multiple times in the past, so that is something that you will have to pay attention to as well. If we turn around and break to the upside, it’s possible that we go looking to the $2050 level.

If we break down below the $1975 level, then it’s likely that you drop down to the $1950, an area where you see the 50-Day EMA. All things being equal, this is a market that I think you do look to the upside in general, but you don’t necessarily have to jump all in right away. Short-term pullbacks continue to offer short-term buying opportunities, but we will eventually see a move to the upside as long as there are plenty of geopolitical issues out there. Let’s not miss the point here, there are plenty of reasons for gold to go higher.

That being said, the market pulling back isn’t necessarily out of the realm of possibility, but right now there are plenty of reasons to think that the gold market will continue to go higher. However, the markets are of course volatile, and you should follow what price does, not what it “should do.” Gold had a massive run to the upside so a couple of weeks of simply grinding back and forth really isn’t out of the realm of possibility or normalcy.

Pay attention to geopolitical concerns and pay attention to bond yields. If those yields start spiking again and geopolitical issues start to calm down, that’s actually going to be very toxic for gold. That being said, if you keep your position size reasonable, you can write through all of the volatility that we are currently seen without having too much damage.

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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