Gold Price Forecast – Gold Markets Stabilize

Gold markets have gone back and forth during the trading session on Friday, but perhaps most importantly they have found support. By turning around and forming a bit of a hammer, that does suggest that perhaps we are ready to turn around and try to recover. If we can break above the highs of the trading session on Friday, it is very likely that we will continue to try and reach towards the top of the consolidation area, perhaps as high as $1830. That being said, it is not necessarily going to be easy to get there, assuming we even can.

Gold Price Predictions Video 10.01.22

To the downside, if we were to break down below the lows of the trading session on Friday, reaching down below the $1780 level, it is possible that the market could drop towards the $1765 level, possibly even lower than that. All things been equal, you should probably pay close attention to interest rates and whether or not they are going higher and lower. Furthermore, you should pay attention to the US dollar and its typical negative correlation. Nonetheless, this looks like a market that is trying to save itself, and thereby continue the overall consolidation and back and forth behavior.

As we continue to chop around, it suggests to me that range bound trading is probably the best way to go in gold, and at this point in time I see nothing on this chart to change that attitude. Ultimately, gold will have to make a bigger decision but right now it does not look like it is ready to do so very easily so I would not put a huge position on.

For a look at all of today’s economic events, check out our economic calendar.