Gold Price Forecast – Gold Markets Test the 200-Day EMA

Gold Price Predictions Video for 09.03.23

Gold Market Technical Analysis

Gold markets have been relatively quiet during the trading session on Wednesday, as we continue to see quite a bit of confusion as to what traders are going to do about monetary policy. After all, even though Jerome Powell has stated that it’s possible that the United States may have to do more rapid interest rate hikes, quite frankly it’s astonishing the traders will almost always find a reason to get bullish on the idea of the Federal Reserve getting dovish. It’s a narrative that traders around the world desperately need, and therefore it tends to stick into the market psyche.

Furthermore, it’s probably worth noting that central banks around the world continue to buy gold, so there is going to be a certain amount of demand for the commodity. We are currently between the 50-Day EMA and the 200-Day EMA indicators, and that typically will cause quite a bit of noise. That being said, there’s also quite a bit of choppiness near the $1800 level in the past, which is just below the 200-Day EMA as well. In other words, even though we sold off quite drastically during the day on Tuesday, we may not have instant follow-through.

Keep in mind that Jerome Powell is speaking in front of Congress for the second day in a row, and if he has proven one thing, it’s that he has the amazing ability to completely screw up conversation, so he will more likely than not say something that will give traders hope to kick off the next narrative. The US dollar I believe will continue to be strong from a longer-term standpoint, but in the short term we probably will get a little bit of a reprieve, because quite frankly that’s the only thing the traders seem to know.

If we do break down below the $1800 level, then I think the next target would be $1750, followed by a move down to the $1700 level. The 50-Day EMA above is significant resistance just waiting to happen, near the $1850 level. If we get above there, then we may make a run to the $1900 level, but I also recognize there was a lot of previous selling pressure there.

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