Gold Price Forecast – Gold Markets Stabilize Ahead of CPI

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Tuesday, but more than anything else has simply sat still around the 200 Day EMA. The market breaking down below the lows of the last couple of days could open up a move down to the $1800 level, and therefore it is likely we would see quite a bit of acceleration to the downside if that does happen. That would also be accompanied by the US dollar strengthening, perhaps in reaction to the CPI numbers coming out hotter than anticipated on Wednesday.

If we were to rally, the $1900 level will be a significant barrier, right along with the 50 Day EMA which is currently lower and approaching that level. I do not know that we can break above there, but if we did, that would be very bullish. The only thing that I can think of right now that could send gold much higher is if we get CPI numbers better or lower than anticipated. That being said, President Joe Biden is giving a speech on inflation during the Tuesday session, suggesting that they already know it is going to be horrific.

Fading the rally that occurs will more than likely be the best way to trade this market because we have sold off so drastically. It is also worth noting that there has been a general selling of everything that has made money, perhaps in an attempt for big funds to raise liquidity. I still do believe in gold over the longer term, but in the short term, it is obvious that it does not have momentum.

Gold Price Predictions Video 11.05.22

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