Gold Price Forecast – Gold Markets Show Signs of Exhaustion

Gold Price Predictions Video for 21.03.23

Gold Market Technical Analysis

Gold markets have initially rallied significantly during the trading session on Monday, testing the crucial $2000 level. The $2000 level of course is a large, round, psychologically significant figure, and the fact that we gave up some of the gains in that area should not be a huge surprise. At this juncture, it’s probably worth noting that the market is trying to form some type of shooting star, and we are overextended. This is not to say that gold is ready to go crashing, but let’s be honest here, the Federal Reserve meeting on Wednesday is going to have a lot to do with where we go next.

I anticipate that we probably pull back from here, it is going to be due to traders trying to take a lot of profit before the volatility that Jerome Powell will almost certainly send into the market. If the Federal Reserve continues to focus on inflation, it could strengthen the US dollar, temporarily putting negative pressure on gold. Nonetheless, we are overbought anyway, so I do think that the $1950 level underneath could be support, and most certainly the $1900 level will be.

The 50-Day EMA sits at the $1870 area and is turning higher and quite sharply. However, it has a lot to do with the fact that the market had run away so quickly that the moving average is moving. Alternatively, I think you got a situation where if we were to break above the highs of the trading session, that could send this market much higher, and perhaps a bit of a blow off top type of situation.

Nonetheless, we are overdone so I would be very cautious with the idea of buying this market, especially as parabolic moves do tend to have massive pullbacks, even if we do continue to go higher. That being said, between now and Wednesday is going to be a very tenuous time, so you need to be cautious with putting too much money into the market at this point. It’s probably worth noting that we recently have broken higher to make a “higher high”, so that of course is a positive sign as well.

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