Gold Price Forecast – Gold Markets Recover After Initial Selloff

Gold Price Predictions Video for 02.05.23

Gold Market Technical Analysis

Gold markets initially pulled back just a bit during the trading session on Monday, only to turn around and show signs of life again. This is what we have been seeing for 2 weeks now, every time the market drops a bit, the buyers step back in and pick it up. It seems that somewhere around $1975 there’s a huge bid for gold, and therefore I think we continue to see more of a “buy on the dip” mentality. This makes a certain amount of sense, because we are at the tail end of a huge move higher, and a lot of traders are out there trying to work off some of the excess froth.

If we were to drop below the recent support level, then you need to go looking toward the 50-Day EMA as a potential support level, and a bit of a magnet for price. On the upside, if we can break out above the $2025 level, then it could lead to a move up to the $2050 level. Keep in mind that gold is being used as a wealth preservation vehicle, and therefore need to understand that a lot of traders are running toward it every time there is a little bit of a selloff as it offers quite a bit of value.

Keep in mind this week is going to be very noisy, and the first couple of days might be somewhat choppy. However, the Wednesday session features the FOMC interest rate statement and press conference, followed by Thursday with the ECB doing the same thing. After that, we have the Non-Farm Payroll announcement on Friday. In other words, the first day or two might be somewhat quiet, but given enough time we should see quite a bit of volatility entering this market, and by the end of the week this market could look quite a bit different than it does right now. Ultimately, I do think that the uptrend sticks, but if we were going to see a significant pullback, more likely than not value hunters would enter the market eventually and I would be more than willing to buy gold on some type of dip that shows signs of support afterward.

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