Gold Price Forecast – Gold Markets Rally on Wednesday

Gold Price Predictions Video for 08.12.22

Gold Market Technical Analysis

Gold markets have rallied quite nicely during the trading session on Wednesday, as we continue to raise toward the $1800 level. Ultimately, this is a market that I think is going to continue to be very noisy, as we are at the top of a range. However, if we can take out the highs of the last couple of days, that means we will break resistance and perhaps even go as high as $1875. Underneath, we have the 200-Day EMA, and therefore I think we’ve got a situation where there are plenty of people trying to get involved in gold but have to come to terms with the fact that sometimes the gold market will rise right along with the US dollar.

This has a lot to do with recession, and when you look through the prism of history, you can see that the past has seen both gold and the dollar rally at the same time. This is a situation where you see a lot of noisy behavior, as people try to figure out why they are buying gold. Interest rates are falling, so that helps gold, but at the same time wealth preservation ends up being a major problem. (Ironically, sometimes this is why people were buying the US dollar.)

Ultimately, this is a “buy on the dip” type of situation. If we can break above the highs that we made earlier this week, then we’ve got another $50 or so ahead.

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