Gold Price Forecast – Gold Markets Take Off After CPI

Christopher Lewis
Updated: Nov 10, 2022, 16:03 UTC

Gold markets have rallied rather significantly during the trading session on Thursday after the CPI number came in cooler than anticipated.

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Gold Market Technical Analysis

Gold markets surged after the CPI number came out cooler than anticipated on Thursday, leading traders to believe that the Federal Reserve may not hike rates as much as originally thought. If that is in fact going to be the case, then it does make a certain amount of sense that we sell this initial move. However, interest rates are still going to be extraordinarily high for quite some time, and it’s almost a certainty that Jerome Powell is going to stay tight for longer than Wall Street seems to want.

The real debate at the moment is whether or not the next hike is going to be 50 or 75 basis points, which at the end of the day only means so much. Stock traders are trying to front run the Federal Reserve, which is something that is very difficult to do. That being said, hope burns eternal and Wall Street got a flicker of it during the day so it does make a certain amount of sense that this is the behavior that we are seeing. If we can break above the $1750 level, then we need to tangle with the 200-Day EMA. We are a bit extended at this point, so it would not surprise me at all to see a bit of a failure.

If we break down from here, we could very easily go back down to the 50 day EMA given enough time. After all, we are overextended, and traders will be looking for something to hang their hat on. At this point in time, although we have had a huge move to the upside, it’s worth noting that we are still in what could be thought of as a bit of a consolidation area.

Gold Price Predictions Video for 11.11.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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