Gold Price Forecast – Gold Markets Show Signs of Life
Gold Price Predictions Video for 31.05.23
Gold Market Technical Analysis
Gold markets initially pulled back just a bit during the trading session on Tuesday, breaking down toward the $1950 level. The $1950 level of course is in an area that we see some action previously, and also has a certain amount of psychology attached to it. If we were to break down below the 61.8% Fibonacci, then we have the possibility of the market turning things around and showing signs of weakness again. With this, a break above the 50-Day EMA would obviously be a good thing, and it would allow traders to start pushing to the upside yet again as it is technically a bullish sign.
On the other hand, if we were to break down below the $1950 level, then it’s likely that we see the market start to pick up downward momentum, perhaps sending it down to the $1900 level. That being said, the $1900 level is obviously a large, round, psychologically significant figure that would attract a lot of attention, and it is probably worth noting that the market also has the 200-Day EMA sitting in that same general vicinity, so it would cause a bit of support for a market that obviously has been bullish as of late.
Anything below there then opens up a massive selling opportunity, which does then suggest that perhaps the US dollar really starts to strengthen as rates continue to rise in America. As long as that’s going to be the case, gold suffers in general. After all, gold does not offer any type of dividend or yield, which is a huge disadvantage to owning gold in a rising rate environment.
In general, I would anticipate that we are going to see a lot of volatility, and that’s probably something that I can say about most markets. I don’t necessarily think this is particularly unique to gold, but it is something that you need to be aware of, as the precious metals markets can be extraordinarily noisy and dangerous if you are on the wrong side of the trade. If you are trading this market, you’re going to have to pay close attention to the bond market as it seems to be kicking around the metals market.
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