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Gold Price Forecast – Gold Pulls Back Slightly on Wednesday

By:
Christopher Lewis
Updated: Mar 29, 2023, 15:21 GMT+00:00

Gold markets pulled back slightly during the trading session on Wednesday, as we continue to see a lot of hesitation.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 30.03.23

Gold Market Technical Analysis

Gold markets have fallen a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior, just underneath the crucial $2000 level. The $2000 level of course makes for good headlines, and it’s also an area that we have seen action at previously. If we do pull back from here, I think there are plenty of support levels underneath worth paying close attention to.

Looking at this chart, the $1950 level underneath would be an area of interest, as the futures market gapped from that level, and it is of course a psychologically important figure. If we were to reach that area, I would be looking for some signs of support that we can jump on, but if we do break down below that level, then we need to start looking toward the 50-Day EMA, presently just below the $1900 level.

On the upside, if we can break out to a fresh, new high, it opens up the possibility of moving to the $2050 level. The $2050 level then opens up the possibility of a move to $2100. Keep in mind that gold seems to be used at the moment for wealth preservation more than anything else, so it does make quite a bit of sense that we have seen gold rally, even in the face of a strengthening US dollar at times. That being said, the interest rate situation is all over the place, so that will more likely than not continue to cause havoc.

Ultimately, as rates rise, that often can work against the value of gold, but as of late, we have seen so much havoc in the banking system that the correlation may be breaking down of it. Ultimately, we are in an uptrend, so it is worth keeping that in mind, but it’s also worth keeping in mind that we are in an area that has been massive resistance previously, so therefore you need to keep in mind that it is going to be very difficult to get above. We are going to need to see some type of fundamental reason for the market to take off, but with all of the concern that we are presently seeing, one thinks that it would only be a matter of time.

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

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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