Gold Price Forecast – Gold Markets Test 200-Day EMA

Gold Market Technical Analysis

Gold markets have pulled back a bit during the trading session on Monday, to test the $1750 level. By turning around the way we have, it suggests that the market is going to threaten taking out the 200-Day EMA. If we were to take that out, then it’s possible that the market could go looking to the $1800 level. There does seem to be a lot of “panic buying” in the market, mainly due to the volatility in the US dollar.

Keep in mind that the CPI numbers last week were softer than anticipated, and that added even more fuel to the fire of a market that was trying to break out. Whether or not it can really take off is a completely different question, but I would say that if we were to take out the $1800 level, you would have to look at it through the prism of a market that has turned around completely. On the other hand, if we were to turn around and take out the $1750 level, then it’s likely that we could go down to the 50-Day EMA, which is sitting right around the $1700 level.

You will have to pay close attention to interest rate movements, because the higher interest rates go, typically the worse gold behaves. Of course, the exact opposite is true. Also, pay close attention to the US dollar, because it does have a significant negative correlation to the gold market as well. In general, this is a situation where we are a little overbought, and that does make sense that we would at the very least see a pullback. However, with the Federal Reserve reiterating its determination to fight inflation, I suspect this rally could still be short-lived.

Gold Price Predictions Video for 15.11.22

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