Gold Price Forecast – Gold Markets Stabilize
Gold Price Predictions Video for 29.09.23
Gold Market Technical Analysis
The gold market certainly looked miserable at the moment, and it also is likely to be a situation where the rallies will continue to be sold into now that we are well below the 200-Day EMA, and of course the $1900 level. The market will continue to pay close attention to inflation in the United States and of course interest rates, so therefore it makes quite a bit of sense that we could see this market continue to drop toward the $1800 level, and the size of the candlestick during the trading session on Wednesday certainly shows just how negative things are at the moment.
In order to start buying gold, you would need to see interest rates start to drop rather significantly, and of course the market take out the 200-Day EMA. Breaking above that opens up an even bigger move, but you can also see that there is a wedge on the chart that people can plainly see, and that of course could offer a bit of resistance above. Ultimately, this is a market that remains “fade on the rally”, at least until something changes from a longer-term macroeconomic standpoint. As things are currently looking, gold is going to suffer at the hands of the US government interest rates. However, there will come a time where buying gold will be a great value, and it could end up being a massive investment.
It’s also worth noting that we are starting to see the 50-Day EMA slope lower, which means that it could cross the 200-Day EMA, kicking off the so-called “death cross.” At this point, it seems like the real safety play is in the bond market, because you can get well over 5% for short duration bonds instead of taking any risk at all, and as long as that’s the case there’s really not much of a point in chasing speculative assets. However, sooner or later the safety aspect of gold will come back into favor, so I think that even if we do sell off at this point, it’s more of a swing trade than anything else. I do not think that we are heading into a cyclically negative market.
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